This seminar provides a basic overview of key practical and strategic aspects of Employee Stock Ownership Plans.
An ESOP is a qualified, defined contribution employee benefit plan that invests primarily in the stock of a company. ESOPs are “qualified” in that, in return for meeting certain rules designed to protect the interests of plan participants, ESOP sponsors receive substantial tax benefits.
Business owners can sell all or a portion of their stock in a business that may otherwise be illiquid or have no established market, to an Employee Stock Ownership Plan, in a highly tax-advantaged transaction. ESOPs are permitted to borrow money, from or on the credit of the employer, to purchase stock from the selling shareholder. 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 addition to providing business owners a means to diversify their assets and gain liquidity, an ESOP is also an employee benefit plan that allows a business owner to attract and retain key personnel.
Stan Bulua of Robinson Brog and Stephen Berman of CSG Partners explain the overall legal structure of a leveraged ESOP transaction and discuss valuation and financing aspects of an such transactions. Attendees gain the following skills and benefits from attending this program:
I. Know how to use ESOPs as a business succession strategy
II. Understand how to integrate an ESOP transaction with estate planning techniques
III. Identify how an ESOP sale can be an alternative to an M&A transaction
IV. Become updated on financing options in the current business environment
V. Learn the fiduciary rules under ERISA applicable to ESOP transactions
VI. Summarize the special tax rules applicable to ESOP transactions
Very useful and timely info.
excellent - innovative ideas and practice
Best, most informative of the classes I've taken so far.
Fine presentation accompanied by high quality, additionally detailed reading notes.
Extremely informative and easy to follow with what can be a complex issue.
Did not know what to expect. These guys are good. In house at a company that is not exactly "closely held" at this point, but the topic was fascinating. I know who to recommend if I ever encounter entities in this space exploring these kinds of options.
Very interesting topic, but warrants more time to cover.
The presenters were excellent in explaining the subject matter of the presentation...
Very technical and helpful.
Complex matter. This is a preliminary introduction. Well done.
nice work good speakers
Great prime on this topic!!!!
Another surprisingly good program at Lawline
Good course for lawyers who help small enterprises raise capital
One of the best CLEs on this site.
Speakers certainly expert on subject-- good introduction to an extremely complex area-- more time would be helpful
Of the many Lawline course I have taken over the years, this was one of the best (assuming you have an interest in the sale-to-ESOP subject matter). The two presenters had a very effective tag team approach and conveyed substantive information clearly an
While the subject is very complex, the speakers were both extremely knowledgeable. I would recommend this course to anyone with a client who has an ESOP or is contemplating one.
The seminar may have been "basic" for ERISA lawyers, but it was anything but that for generalists. Admittedly a complex area.
It probably could have been a two-hour course. Very informative.
a lot of information