ESOP Advisory

For most business owners, the business itself represents a vast majority of the owner’s net worth. If a business owner is considering selling all or a portion of the business as a means of enhancing personal liquidity and diversifying personal assets, there are a number of liquidity alternatives available. Selling all or a portion of the business to employees through an employee stock ownership plan (ESOP) can achieve the desired liquidity and prove to be a viable alternative to an outright sale of the business, a management buyout, or a leveraged recapitalization.

An ESOP is a qualified, defined contribution retirement benefit plan that primarily invests in the stock of the employer’s company. A sale of stock to an ESOP offers the opportunity for unique tax advantages to the business owner (seller) and to the sponsoring company. In addition, it can provide a meaningful retirement benefit to the employees.

KPMG Corporate Finance’s seasoned professionals have experience structuring a variety of customized ownership transition strategies, from sales to a third party to leveraged ESOP buyouts. Our objective is to help our clients explore their options and identify a course of action that meets both their personal and business goals. Every situation is unique—the approach that works for one company might not work for another. We help determine and implement the strategy that is right for you.

For a detailed explanation of services, please download our ESOP Advisory Services brochure (PDF)