The firm specializes
in the design, formation and implementation of Employee Stock
Ownership Plans (ESOPs). ESOP Advisors Group is nationally recognized
for its commitment to both the shareholders and the employees
of sponsoring companies. ESOP Advisors Group is long known for
its ability to: design ESOPs for maximum possible tax benefits,
form ESOPs on a foundation of a lasting "ownership"
culture, and implement ESOPs so that the "employee"
owners reap all their vested "reward of ownership" when
they leave the company.
ESOP
Advisors Group works primarily with companies valued in excess
of $5,000,000. It builds an ongoing working relationship starting
with accomplishing a FREE Viability Assessment through annual
reviews. This assures that the goals of the sponsoring company
for implementation of the ESOP are continually being achieved.
An ESOP can help you save substantially when you are ready
to retire or otherwise pass on your business. The table below
highlights the sample cost
of exit to shareholder by implementing various strategies. See
how Strategy 1 – Sell to ESOP – garners you the most
return.
Assumptions
& Stock Sale
Company Value:
$10,000,000
Company Payroll:
$2,000,000
Pre-tax Cash: $2,000,000 |
Strategy
1 |
Strategy
2 |
Strategy
3 |
Strategy
4 |
Sell
to Heirs or Sell to Others Sell to Others Sell to ESOP
Mgt. Team wo/$ without BI* with BI* |
Sell
to Others
without BI* |
Sell
to Others
with BI* |
Sell
to ESOP |
| Cost
to Bonus |
16,000,000 |
N/A |
N/A |
N/A |
| Gross
to Owner |
10,000,000 |
10,000,000 |
10,000,000 |
10,000,000 |
| Fed
Capital Gains 15%) |
1,500,000 |
1,500,000 |
1,380,000 |
N/A |
| State
Capital Gains (8%) |
800,000 |
800,000 |
736,000 |
N/A |
| BI
Commission (8%) |
N/A |
N/A |
800,000 |
N/A |
| Tax/Other
Leakage |
$8,300,00 |
$2,300,00 |
$2,916,000 |
$0.00 |
| Net
to Owner |
$7,700,000 |
$7,700,000 |
$7,084,000 |
$10,000,000 |
*Merger & Acquisition Business Intermediary
|
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