One of our Senior Managing Director and CPAs, Marcus R. Piquet, gives a presentation at the 12 Annual Connecting Faith & Business Summit located at the Riverside Convention Center on ESOPs: A More Excellent Way To Do Business.
In this video, Marcus addresses one of the biggest challenges facing privately held business owners: succession planning. He explains that every business owner eventually faces a transition due to retirement, with nearly half of U.S. privately held businesses owned by individuals between ages 55 and 65—a phenomenon often referred to as the “silver tsunami.” Marcus outlines common ownership transition strategies, including family transfers, management buyouts, and third-party sales, and explains why these approaches often fail due to lack of capital, long payout timelines, heavy tax burdens, and loss of control.
Marcus then presents Employee Stock Ownership Plans (ESOPs) as a “more excellent way” to transition business ownership. He explains how ESOPs allow owners to sell their business at full fair market value, potentially defer or eliminate capital gains taxes, and receive payment in a significantly shorter timeframe than traditional internal buyouts. ESOPs enable employees to become owners with no out-of-pocket cost or personal financial risk, while allowing founders to remain involved to ensure leadership continuity, cultural preservation, and long-term stability.
Drawing on decades of data, Marcus highlights that ESOP-owned companies provide significantly higher retirement benefits, experience faster job growth, and are more resilient during economic downturns. He concludes by emphasizing that ESOPs offer a tax-advantaged, employee-centered succession strategy that preserves legacy, strengthens communities, and creates sustainable ownership transitions for American businesses.