ESOPs as a Business Transition Tool
About This Meeting
ESOPs have become increasingly common as a means of transferring ownership in a closely held company. They allow companies to use pretax dollars to buy out one or more owners, in part or in full. In a C corporation, if the ESOP ends up with 30% or more of the ownership, the seller or sellers can defer taxation on the gain by reinvesting in other securities. This Webinar looks at the issues involved in selling to an ESOP and how an ESOP sale compares to other alternatives for transition. You will learn:
- How the tax advantages of selling to an ESOP work.
- Rules and considerations for deciding on an ESOP.
NCEO Webinar replays are the recorded version of our live ESOP Webinars, using PowerPoint presentations viewed online. To purchase a twelve-month subscription providing unlimited access to all recorded ESOP Webinars, including this one, follow this link
. (Replays are not available for individual purchase.)
This replay was recorded on April 10, 2012.
|What Is an ESOP and Why Might You Want One? |
Joel Davis, Principal Financial Group
|Valuation for ESOP Purposes |
Aziz El-Tahch, Stout Risius Ross
|Is an ESOP the Right Choice? |
Anthony Dolan, Prairie Capital Advisors
Joel H. Davis
Principal Financial Group
Joel Davis is a director of consulting in retirement and investor services of The Principal Financial Group
(The Principal®) in the Minnetonka, Minnesota office. He has 16 years of experience and focuses on clients with employer securities in their plans. His technical areas of expertise involve ESOP consulting, financial analysis, repurchase liability, administration, and compliance review. Joel earned his bachelor of arts degree in management from Hamline University in Saint Paul, Minnesota, and his MBA from the University of Saint Thomas in Minneapolis, Minnesota. He is a member of the National Center for Employee Ownership, The ESOP Association, and the Minnesota Chapter of The ESOP Association.
Anthony J. Dolan
Prairie Capital Advisors, Inc.
Anthony Dolan joined Prairie Capital Advisors
in 2005. As vice president, he advises middle market companies on M&A and ESOP transactions, divestitures, private placements, and corporate valuation. Anthony has worked in a variety of industries with particular emphasis in the industrial products, defense contracting, engineering, retail consumer and distribution markets. Prior to joining Prairie Capital Advisors, Anthony was a senior associate for Alpha Capital Partners, Ltd., a private equity firm focused on minority and control investments in middle market companies, particularly in the industrial manufacturing market. There, he identified and evaluated potential investments across a range of industries and assisted portfolio company management teams on a wide range of corporate finance and strategic initiatives. Anthony also participated as an observer on the board of directors of several portfolio companies.
Stout Risius Ross
Aziz El-Tahch, CFA is a director in the valuation & financial opinions group at Stout Risius Ross, Inc.
His concentration is in ESOP and ERISA advisory services. He has experience in the valuation of business interests for both private and public corporations. Aziz has performed valuation analyses in a broad range of industries and for numerous purposes, including fairness and solvency opinions, estate and gift taxation, shareholder disputes, purchase price allocation, mergers and acquisitions, marital dissolutions, and liability and damages analysis. He has extensive experience in the valuation of business ownership interests in ESOPs, and has performed analyses related to ESOP security formation and transactions, determination of transaction fairness, and adequate consideration and annual employer security valuation updates. Aziz also has experience with intangible asset valuation analyses.