Employee Stock Ownership Plan [ESOP]
Sometimes the Right Buyer Comes From Within
When the time comes to sell your company, finding the perfect buyer is no walk in the park.
Rather than a long search for an outside buyer, your best option may be to look within. Creating an Employee Stock Ownership Plan, or ESOP, can be the solution that checks all the right boxes.
That Perfect Buyer
You want a buyer that:
- Is willing to acquire either a minority interest or 100% of the business.
- Doesn’t need to get involved in the day-to-day operations of the company.
- Will pay fair market value.
- Offers flexible terms.
- Provides the option of paying no capital gains tax on the sale.
- And/or provides some upside from the future performance of the business.
The only buyer that fits the majority of these criteria is an ESOP.
ESOPs are an increasingly common method for motor carrier owners to exit the trucking industry. Transport Capital Partners’ (TCP) ESOP services help make this complex procedure simple and worry-free.
At the 2015 TCA annual convention, Transport Capital Partners was pleased to present seminars on The Perfect Buyer – an ESOP. You can download the presentation here.
What is an ESOP?
An Employee Stock Ownership Plan (“ESOP”) is a qualified defined contribution employee benefit plan as defined by the IRS. ESOPs are commonly used to acquire shares of closely held companies from owners seeking liquidity.
While ESOPs are often the perfect buyer, adhering to IRS and Department of Labor guidelines can be complicated and confusing. TCP’s new ESOP services are here to guide you with ease through the complicated steps of completing an ESOP transaction.
A Win-Win Situation
The advantages of an ESOP are compelling – both to the seller and the ESOP participants. Not only are the tax benefits exceptional, but the participants, your employees, will gain substantial wealth building potential.
To the owner, the most valuable benefit of an ESOP is often the unique opportunity to reward your long-term employees – while also perpetuating the company they helped you build.
Ronald Gilbert & ESOP Services, Inc.
TCP has partnered with Ronald J. Gilbert and ESOP Services, Inc. to perform ESOP evaluations and services.
ESOP Services, Inc. is an international consulting firm specializing in all aspects of Employee Stock Ownership Plan applications for private and public companies.
Co-Founder and President of ESOP Services Inc., Ronald J. Gilbert, is a widely recognized authority in all aspects of ESOPs. He has written and spoken extensively on the topic, serves on the ESOP Association’s Board of Governors and Legislative and Regulatory Advisory Committee. Mr. Gilbert is also on the board of directors of four successful ESOP companies.
Ron is co-author and co-editor of Employee Stock Ownership Plans: ESOP Planning, Financing, Implementation, Law and Taxation, the most comprehensive work on the subject.
His wealth of experience and his expertise in handling ESOPs make him the perfect partner for TCP – and the ideal resource for you when setting up an ESOP for your business!
