Employee Stock Ownership Plans (ESOP)

Developing the right business strategy for your company to transition to the next phase is not an easy task.  There are many alternatives available to transition your business to either the next generation or to new ownership.  One alternative often overlooked is creating and implementing a plan for your employees to become the new owners of the company through an ESOP.

ESOPs are a valuable option for companies to ensure the generation of employees growing the business today will be leading it tomorrow. The business advisors at EKS&H work with clients to determine whether it makes sense for them to become one of more than 11,000 ESOP companies in the United States.

Before clients pursue the ESOP option, EKS&H helps them consider and evaluate various factors that could affect their decision, including:

  • company owner plans for retirement in the next five to 10 years
  • availability of a third-party buyer
  • availability and interest of immediate family members to effect a management transition
  • quality of the management team that will lead the company into the future
  • strength of company balance sheet to absorb ESOP debt
  • level of company maturity and capital expenditure needs
  • cash flow available to service debt
  • potential for increasing company value
  • participatory management
  • desire to provide employee incentives

Benefits clients gain from our ESOP services include:

  • potential for tax advantages that aren’t available in a third-party sale
  • viable alternative for company owners who want to ensure the legacy of their organization
  • ability to sustain the company’s success through employee ownership

For more information about EKS&H’s ESOP services, please call (303) 740-9400 in Denver or (970) 282-5400 in Fort Collins.