Sale Of Stock In A Closely-Held Business To An “ESOP” (2016)
Total Credits: 2.0 Professional Practice
An ESOP provides a highly tax-efficient vehicle for a business owner to sell all or a portion of his business that may be otherwise illiquid or has no established market, thereby permitting the business owner to diversify his asset holdings and significantly reduce investment risk. An ESOP is also an employee benefit plan that allows a business owner to attract and retain key personnel. Alone among qualified employee benefit plans, an ESOP can also borrow money from or on the credit of the employer, provided the ESOP uses the money to buy employer stock. Depending on structure, an ESOP-owned company can become a nontaxable entity and use money that would have otherwise been paid to taxes, to amortize the debt used to finance the transaction.
In this program, a highly experienced faculty from diverse professional backgrounds will explain the overall structure of a leveraged ESOP transaction, including the objectives in establishing an ESOP, the tax benefits available in an ESOP transaction, the financing aspects of an ESOP transaction and the special ESOP valuation requirements.
Stanley E. Bulua, Partner, Robinson Brog Leinwand Greene Genovese & Gluck P.C., NY, NY
Lawrence Kaplan, Managing Director & Founder, CSG Partners, New York, NY