ESOP Services

An Employee Stock Ownership Plan (ESOP) is a defined contribution plan that is operated through a plan trust and governed by the Employee Retirement Income Security Act (ERISA).

ESOPs offer business owners a tax advantaged succession planning vehicle, that provides flexible options for selling a portion or all of a business while preserving the legacy of the company, its employees and exiting owners. Founders and main shareholders can sell back all of their shares at once, or percentages of their shares over time to the ESOP. This facilitates more control over exit payouts and the transition of leadership consistent with the owner’s wishes.

ESOPs are most commonly implemented to:

  • Provide an attractive after-tax cash flow for departing owners of closely held companies
  • Provide substantial long-term incentives and rewards for management and employees
  • Provide owners with the flexibility to gradually transition the ownership over a period of time and thus remain actively involved in the business

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Aprio’s ESOP valuation specialists have the technical expertise to provide valuation assistance with the formation of new ESOPs, as well as the preparation of annual valuations for regulatory compliance purposes to meet the Department of Labor’s reporting requirement.

Aprio can also provide business owners integrated wealth management to coordinate financial, tax, estate and investment planning to reduce tax liabilities, mitigate risks and maximize opportunities.

Aprio offers comprehensive transaction advisory services for businesses that maintain existing ESOP plans or for those considering this model. Our ESOP services include:

  • Financial and tax due diligence
  • Income tax and accounting
  • Assurance services
  • Valuation services
  • Wealth Management – Private Client Services

If you are considering installing an ESOP or need valuation assistance with an existing plan, contact Cardell McKinstry and Carrie Zhou to learn how Aprio’s ESOP team can benefit your business.

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