BDO USA has published an article, “Unlocking Liquidity: Selling Your Business to an ESOP”, published on BDO USA. The abstract is as follows:
An employee stock ownership plan – better known as an ESOP – can be an attractive and tax efficient alternative for owners of private companies that are seeking liquidity but do not want to sell to a third-party buyer. An ESOP is a qualified retirement plan that provides the business’ current and future employees beneficial ownership in the company over time. In addition to providing retirement benefits for employees, selling a company to an ESOP can be used as an exit or liquidity vehicle for the selling owner as well as provide tax benefits for both the owner and the company.
Posted by Marin Larkin, Associate Editor, Wealth Strategies Journal.