ESOP Considerations

In response to the question 'Wow, But this seems too good to be true?'

We offered a brief history of the ESOP to illustrate that ESOPs are legitimate, ethical and appropriate for most businesses --- when they are implemented correctly.

What we really want you to appreciate is that:

  • Before ESOPs, capital was essentially locked in privately held companies.
  • Owner(s) could not turn their equity into cash unless they sold the company entirely and paid exorbitant taxes.
  • ESOPs are very powerful & legitimate tools of corporate finance.
  • They are also very simple and straightforward to implement by ESOP professionals

However, they can be a risk to your business if designed by inexperienced people.

You may have also realized that ESOPs are misunderstood by nine (9) out of ten (10) Financial Consulting Specialists.

That means 90% of all financial consultants will never suggest that you evaluate an ESOP because they simply wouldn't know what to do to implement such a plan or they don't even understand how it will benefit you.

Most consultants stay on the road they frequently travel and will guide you towards a solution or a financing concept which is familiar to them.

As a consequence, most owners of private businesses remain confused about the benefits of a leveraged ESOP. Some may be severely misinformed and therefore understandably skeptical.

We want you to be aware of another recent development in the field of ESOP Consultancy. Today, business buyers are scarce, bank & VC money is limited and IPOs are almost non-existent. So, a number of financial consultants are just now jumping on the ESOP bandwagon and entering this market.

Most are very experienced financial consultants which are looking into ESOPs for the very first time due to client requests.

Another group of "new" ESOP consultants are displaced corporate employees. They are usually very capable with ESOP interpretation and implementation; but, lack the deal structuring sophistication needed for designing and executing an effective exit strategy.

Why choose Financial Exit Planning, Inc. ?

Simple, this is probably the last chance to maximize your personal wealth from the company you created.

  • We have the ESOP knowledge PLUS the deal making sophistication
  • We have "Real World" experience built over many years
  • Our exit plans are tailored to your specific situation and goals
  • Our designs are implemented with ERISA Attorneys
  • Our standard methodology controls cost and minimizes the effort

In the unlikely event that an ESOP or MSOP doesn't make sense for you, we provide conventional transactions
Homepage | ESOP History | Supreme Exit Plan | Considerations
Have you built a successful business and still feel like there is no way to get the value that you created out of the business?

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