Journey to an ESOP & Beyond

This episode takes advantage of the opportunity that we have during Christmas to stop and celebrate the reasons why folks decide to go towards ESOP… In this episode, we cover the ghost of Christmas past and thinking about the people that have helped your business get to where you are and how an ESOP can be the perfect way to reward them.  The Ghost of Christmas Present reminds us of what is happen...

This episode we get to review what is important about third party administration of an ESOP plan.  Scott Freund is an absolute expert at the nuances of how benefit testing as it incorporates IRS limitations related to ESOP Plan design.  For instance, IRS code section 404 that generally allows for a contribution to the ESOP plan up to 25 percent of the payroll and IRS code section 409(p) related to...

In this episode, we discuss the other parts of the presentation as it relates to the company overview getting into other aspects of the presentation for the trustee and the valuation firm.  The value of having a solid presentation, regarding how the company operates, the leadership team, the business processes that are repeatable, and provide a functional mitigation towards the business.  This is...

This episode we are following up on the August IRS notification entitled “IRS cautions plan sponsors to be alert to compliance issues associated with ESOPs” Allison Wilkerson is a frequent speaker at ESOP conferences and works at McDermott Will and Emery out of Texas.  She has a very strong background in working through complex IRS and DOL issues related specifically to ESOPs.  She offers some ins...

In this episode we explore another very important section of the ESOP site visit presentation - “The Customer Overview.”  Along the Journey to an ESOP, sell-side advisor with the the company’s team are presenting the company to the trustee and valuation firm.

This episode is helpful to better understand how the banker is thinking about the ESOP deal.  Chris Cucci is Chief of Staff at a unique bank - they are a B-Corp that understand the social impact that ESOPs play in many areas - the good that can come from selling your business to an ESOP.  Chris is a veteran banker and has used his skillset to direct their efforts to be a strong resource for compan...

In this episode - we are celebrating football season by kicking off with “Rudy” one of the most inspirational football movies of all time about the underdog…The episode starts a series to cover preparation for the inevitable ESOP site visit whereby the buy-side team congregate typically at the company’s office.  The focal point to this episode is to help prepare for the site visit - detailing the...

This episode is super helpful for those that want to learn from someone who has taken his own “Journey to an ESOP” Mark Stevens is the founder of Georgia Spa out of the Atlanta area.   Mark’s company went 100 percent ESOP.   He shares on the podcast his experience with the ESOP process.

This is part 3 of a series on ESOP feasibility.  One of the big questions on people’s minds is when should I pull the trigger for my ESOP transaction as far as timing goes.  We get to dial into the dramatic scene in Mission Impossible 3 where Ethan Hunt is tied to a chair and is given 10 seconds to tell where the Rabbit’s foot is which is some kind of weapon of mass destruction.  Drama to not dram...

On this episode - Corley and I discuss the approach to an ESOP transaction to establish the valuation through an arm’s length negotiation with Trustee.  Corley explains the particular requirements and approach to supporting the transaction trustee on the business valuation that will helpful to better understand what you should consider in planning your ESOP transaction.

On this episode - we evaluate the idea of taking the “mask off” - what is actually going on with the new IRS Article related to the IRS commissioner investigating ESOP transactions and how do you build your ESOP plan to not be concerned with an IRS issue? Meanwhile utilizing the available tax benefits.  This is a critical part of the feasibility Al that you need to thoroughly review with your advi...

On this episode Shawn Busse (CEO) of Kinesis out of Portland, OR get the opportunity to talk about the valuation from the perspective of ways to improve.  We tap into Kinesis’ visionary and unique approach to “branding” that incorporates the proper alignment of customers and employees.  It is a powerful concept that takes guts for a company to embrace that kind of change but in the end - a busines...

This episode will launch a series of ESOP feasibility episodes that bring up some relevant issues related to planning your ESOP.   Are you considering a partial or 100 percent ESOP?  What will work best for your goals and objectives?  We are going to dig into cash flow and the connecting points to modeling a sustainable leveraged ESOP transaction.  Assessing entity structure in relationship to the...

This episode began from the meeting we had in Portland OR this year when I got to meet with some folks thinking about going towards an ESOP.  Former senior editor of Forbes - he created the Small Giants Franchise…he now has his own podcast called 21 Hats.  Loren is a wealth of information - all of this leads to an interesting dialogue on ESOPS.

On your journey to an esop - who are the ESOP advisors?  Catch me if you can is an excellent movie about a high school con man that intuits at an early age the art of providing just enough true information to become believable - this is a true story.  Why is he successful?  This episode has philosophy and psychology even though not my specialty…I am just an ESOP guy.  However - all of it makes me...

This episode leverages the knowledge of an experienced ESOP insurance agent to help folks better understand the requirements for Fiduciary, D&O, EPL Insurance…Patrick is has an excellent way of keeping this part of the ESOP requirements straightforward so that they are easy to understand and plan for on your journey to an ESOP.

In this episode, we deal with a good overview of how important it is to keep our key people if we want to grow and strengthen the value of the business.  Poor Edmund Dante’s - betrayed and put in the dungeon - retained against his will and that would inspire a whole novel/movie around vengeance.  We want our retention strategies to leverage positive tools like the ESOP and SAR plans to compel the...

  This episode focuses on the journey to an ESOP for Progressive Flooring and Services, Inc. out of Ohio.  We worked with the company for the last few years prior to and after COVID.  The company persevered under great leadership and a vision for the future to pull off a very successful ESOP transaction.  The episode will help others that are considering an ESOP with the experience Nino and his te...

In this episode - we explore a very often asked question as to what age should I be to start my ESOP.  One of my favorite aspects of ESOP transactions is that it can be very flexible to structure and it is not always a used as just an exit plan.  This podcast focuses on answering questions around the age of shareholders and when would be the best time for them to start the ESOP process - because y...

Jim Bonham - President of “The ESOP Association” was kind enough to share with us a solid overview of the a dynamic and powerful resource for the ESOP industry.  They have a strong role to play into the ESOP political landscape being credited with ongoing legislative efforts to stay in front of congress and help advance positive ESOP legislation.  Mr. Bonham provides updates related to Secure 2.0...

This episode is a continuation of our tribute to the 70’s with this classic and memorable song that captures everything we want to say in two simple words: FREAK OUT…. I was inspired for this episode in having multiple experiences with clients throughout the last several years from mild anxiety to a little more than anxious when it came to certain parts of the process.  Keeping in mind that this i...

What are the alternatives to an ESOP?  One is the EOT or employee ownership trust.  This presents some particular differences to the ESOP that might be part of the consideration early in your journey to an esop.  Chris Michael is the founder of EOT advisors and helps selling shareholders review this as an option to the ESOP.  Chris is a very knowledge professional with an academic background as we...

This episode comes from questions generated from our website at journeytoanesop.com - to help better understand what is the best way to announce the news to your employees about your new ESOP.  On this episode, we cover the deeper questions of matching up ESOP news and announcements with a particular culture and how important it is to have an impactful message as you build.  But having a strategy...

This episode we get the opportunity to interview Mike Keesee and Carl Brown selling shareholders of an Architect and Engineering firm out of Orlando FL.  Mike and Carl have been on a journey to an esop - find out lessons learned and how they have worked through the process.  The company happens to be both an EOS (traction) and Great Game of Business managed company.  This episode will provide some...

This episode is generated out of many recent conversations with different folks all over the country - it is intended to discuss an important topic that selling shareholders that are considering the ESOP as an option need to nail down early in the process - How do I get my money for the stock I just sold? Once they understand this - they can either continue on their journey to an ESOP or take anot...