Specialized Services for Employee Stock Ownership Plans (ESOP) - ESOP Accounting, ESOP Plans and More

An ESOP plan is a qualified retirement plan that is a valuable tool as part of a shareholder transition strategy. ESOP plans 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 plan 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, ESOP plans 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 ESOP accounting as well as with the tax and regulatory complexities of ESOP plans, including leveraged plans, share allocation, and the valuation process.

Core ESOP Accounting & Advisory Services

• Assessment of whether an ESOP plan 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
• Quality of Earnings analysis
• 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
• Executive search services for leadership/management team successors

Learn about the benefits of an ESOP plan as a private company transfer strategy, and about our many ESOP accounting services. When you’re ready to engage with Kreischer Miller business advisors for ESOP accounting and more services, please connect with us.

We recommend this Kreischer Miller article – 5 Questions to Determine Whether an ESOP is Right for Your Company – as more good introductory material on this transition strategy for your private company.

Lastly, our Center for Private Company Excellence Seminar: ESOPs as a Growth and Liquidity Vehicle, presents plenty of good introductory material to help get you up-to-speed on this financial strategy. Please view and listen to segments from the seminar.