Employee Stock Ownership Plans (ESOPs) are tax-qualified retirement plans like 401k plans, pension plans and qualified profit-sharing plans. However, ESOPs have some unique features that allow them to be used as a vehicle to acquire private company stock from a business owner – to essentially become the buyer of a privately-held business.
How much can your business benefit from ESOP?
Get your free Preliminary Business Assessment, which includes a high-level valuation and debt capacity analysis.
Client Engagement Process
The key to every successful transaction is FIRST understanding the goals and objectives of the client. We thoroughly review our client’s objectives, the current market conditions for their business and any obstacles that may exist to achieving each of the desired objectives. The first step in our process begins with our Client Assessment Analysis. This creates the blueprint to identify what specific actions to take and the timelines needed from pre-transaction though post-transaction.
Client Assessment Analysis
- Tax Planning
- Specific Liquidity Needs
- Validation Thresholds
- Risk Management
Ambrose’s Unique ESOP Experience
We have extensive knowledge and experience in utilizing an ESOP as an exit planning solution.
Options
We help business owners and their advisors understand and develop customized ESOP buyout and M&A strategies to either provide partial liquidity to shareholders or to complete a full sale. The AmbroseAdvisors team is experienced in the valuation, financing, tax, accounting, and employee benefit aspects of buyout transactions. Whether you are an existing ESOP-owned company looking to provide non-ESOP shareholders a liquidity event, a corporate board evaluating an ESOP buyout transaction, or a business owner looking to maximize after-tax proceeds in an M&A sale transaction, we can provide insight, counseling, and assistance in helping you make a fully-informed decision.
Duel-Track Process
ESOP Buyout and M&A Sell-Side. Our strategic approach to investment banking is unique as one of the only providers of dual-track financial advisory services that utilizes the ESOP transaction and its after-tax value as a near-certain backstop to the M&A sale process. Our team simultaneously initiates sale and ESOP processes to efficiently utilize management resources, perform due diligence, and approach the market, while maintaining optionality for as long as practical.This allows business owners to evaluate the following aspects of both transactions: after-tax proceeds, fit with potential buyers, ongoing involvement & impact of management while providing an additional negotiating tool with potential buyers.