ESOPs: A Tax-Efficient Liquidity Strategy
Did you know that most employee-owned companies pay significantly less State and Federal income tax than their counterparts? Did you also know that selling to an ESOP is an alternative to a traditional sale where the owner retains control?
Growing tax rates and a volatile economic climate have made ESOPs increasingly attractive for owners of middle market companies who are exploring full or partial liquidity options. ESOPs offer owners tax-efficient liquidity and provide numerous other benefits to businesses and employees.
Selling owners benefit from a fair market-based valuation, orderly succession planning options, the ability to eliminate or defer capital gains taxes on the entire sale proceeds, all without giving up control over his or her company. At the same time, the business can become an entirely tax-free entity, the business gains an important talent incentive and retention tool, and the employees gain a meaningful benefit that aligns their interests with those of the company.
Join this session with Mal McLaren, a fellow Cornell alum and CEO of employee-owned McLaren Engineering Group, Robinson Brog Partner Stan Bulua, and CSG Partners Managing Director Larry Kaplan, for an engaging discussion on the benefits of establishing an ESOP. Bulua and Kaplan will address the legal and technical/financial aspects of how an ESOP sale works.
12:00noon-1:30pm. $25 for Members includes lunch buffet and lecture. Advance reservations required by Monday, May 23rd, at which time they are considered final sale.
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