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Employee Stock Ownership Plan
ESOPs are a versatile structure through which employees acquire ownership rights in a company, and they offer unique opportunities for both owners and employees. Owners benefit from succession and estate planning, thereby providing the business a platform for continued growth and success with employee involvement. Research indicates that ESOPs engender less employee turnover and increased company profitability, improved employee motivation, more dynamic innovation, higher ROI, distinct tax benefits, and increased beneficiary wealth.
ESOP appraisals are a specialized area of business valuation with unique nuances that differentiate them from other structures. ESOPs are regulated by both the Internal Revenue Service and the Department of Labor. These plans are qualified under the Employees Retirement Income Securities Act of 1974.
Oxburgh Row Financial has a contractual partnership with nationally prominent ESOP advisors and valuation experts. The principals in this alliance have facilitated hundreds of ESOP transactions across the United States and have completed over one thousand ESOP related valuations. Additionally, the President of our partner company has served on the finance committee of the ESOP Association for over two decades and has held positions as both a trustee and independent fiduciary for ESOPs nationwide.
Oxburgh Row provides initial valuations for the original ESOP purchase and continues with annual valuations for plan administration. The services are accompanied by a comprehensive report that communicates the company value to employee owners. The scope of services provided include:
- Preliminary feasibility and valuation
- Comprehensive valuation
- Fairness opinion
- Annual valuation
Case study: The benefits of forming an ESOP
October 22, 2015
Employee Stock Ownership Plans can be a important part of an effective exit strategy. Are you familiar with all of the benefits of forming an ESOP? The story of Schweitzer... (Read more)
Is Your Company a Good Fit for an Employee Stock Ownership Plan?
July 29, 2015
If you're like many successful entrepreneurs, a significant amount of your personal wealth consists of your ownership interests in the company you've built. If you are nearing retirement... (Read more)
Most millionaire business owners have no succession plan
July 22, 2015
Private companies have created vast wealth for millions of Americans. But as business owners start reaching the later stages of their careers, a new study showed that... (Read more)
Investigate the tax benefits of forming an ESOP
April 23, 2015
Employee Stock Ownership Plans are S-Corporations that can grant business owners significant tax benefits. Most research about ESOPs focuses on the benefits to employees. Many studies, for example, show that a sense of ownership can be a... (Read more)
Using ESOPS in Succession Planning
February 4, 2015
A Case Study: An ESOP is one of many options available to business owners considering succession-planning options. There are substantial advantages, but there are also regulatory and cost considerations. A feasibility study may suggest whether the ESOP is an appropriate option. In this article, authors Kelly Finnell and Andrew Holmes share their views on when an ESOP is feasible using a case study... (Read more)