Specialized services for Employee Stock Ownership Plans

An ESOP is a qualified retirement plan that is a valuable tool as part of a shareholder transition strategy. ESOPs have the following advantages:

  • A transaction mechanism as part of private company shareholders’ exit and transition strategy
  • A way for the company culture and legacy to endure because ownership remains in the hands of the people who have worked to build it
  • Significant tax incentives for the exiting shareholders and the company both before and after the company becomes an ESOP
  • Motivation and rewards to employees over a long-term time horizon

As an exiting owner, an ESOP can help you diversify your assets, create liquidity, and realize tax benefits. It also allows you to control the timing of your succession and transfer and stay involved in the business post-retirement, if you choose.

At the same time, ESOPs provide a powerful incentive for employees by giving them an opportunity to share in the company’s growth on a tax-deferred basis. Studies have shown that ESOPs have a tangible effect on employee morale and productivity, turnover, and company performance.

Kreischer Miller has deep experience in the accounting, tax, and regulatory complexities of ESOPs, including leveraged plans, share allocation, and the valuation process.

Core Services

  • Assessment of whether an ESOP is right for your company
  • Plan design, structure, and set up
  • Compliance with Section 409(p), DOL, and ERISA requirements
  • Analysis of tax benefits
  • Evaluation of liquidity alternatives
  • Redemption planning
  • Estate planning
  • Compliance assistance for the selling shareholder
  • Company and ESOP plan audits and tax compliance
  • Coordination with the valuation firms and other professional advisors to the ESOP
  • Coordination with other company retirement plans and additional employee benefit plan services