ESOP Advisory Services with a National Footprint

Every year, Vision Point Capital helps companies nationwide with their ESOP needs including initial transactions, annual valuation updates, ESOP feasibility, DOL audits representation, and fairness opinions. Furthermore, we are active in sponsoring and speaking at both national and regional conferences such as The ESOP Association and National Center for Employee Ownership.

An Employee Stock Ownership Plan Can Be a Win-Win

Employee stock ownership plans (ESOPs) have been around for almost 40 years and is an approach and is one of the many alternatives a business owner has when considering the right exit strategy.

Technically, an ESOP is an employee benefit retirement plan, but if implemented properly it can also serve as a vehicle for ownership transition that has tax advantages. ESOPs are highly technical and not for the faint of heart, but when the transactions are structured properly, the ESOP can create tremendous value for the seller, company employees, and the management team.

ESOP Feasibility & Sustainability

Is an ESOP right for you? An ESOP is not a one-size-fits-all strategy. However, for the right company, it can make a good company a great company.

Because they have a stake in the company, studies have shown that employees of ESOP-owned companies have a higher overall productivity and job satisfaction than non-ESOP employees.

When you work with Vision Point Capital, our ESOP advisory services will help you determine if an employee stock ownership plan is a potential fit for your company or if another exit alternative should be considered. Then, we can help facilitate the transaction and make recommendations for avoiding common pitfalls and mistakes that could have costly long-term repercussions.

Here are some of the more popular reasons an ESOP might be a good fit:

  • The retirement of an owner(s) is imminent
  • Owner(s) wanting to take some chips off the table (partial ESOP transaction)
  • Potential tax advantages like sales proceeds deferral (C-corps) or tax-free status (S-corps)
  • Owner(s) want to reward or incentivize employees
  • Potential increases in ESOP valuations due to recent tax law changes