News & Updates

Dan Zugell speaking at the Financial Planning Association of Middle Tennessee Symposium

Dan Zugell Featured in The Alternative Board Newsletter

Upcoming Events

ESOPs for Breweries: Trends & Opportunities

Wednesday, August 1, 2018
10:00 AM/ PT

Webinar Length: 60 Minutes

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Is an ESOP Right for You?

October 17-18, 2018
Sheraton Downtown Hotel
250 North Main Street, Memphis, TN.
800-325-3535

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Fall ESOP Forum

October 2 (pre-conference)
October 3–4, 2018
Hotel Albuquerque
800 Rio Grande Blvd. NW
Albuquerque, NM 87104
(505) 843-6300
Albuquerque, NM

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ESOP Nuts and Bolts: Employee Stock Ownership Plans

August 2, 2018
Entertainment Partners
2950 N. Hollywood Way
Burbank, CA 91505
(818) 955-6000

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ESOP Association’s 41st Annual Conference + 27th Annual Awards Ceremony

May 24-25, 2018
Washington, DC

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NCEO 2018 Employee Ownership Conference

April 17 (pre-conference)
April 18–20, 2018
Marriott Marquis Hotel
265 Peachtree Center Ave NE
Atlanta, GA 30303
(404) 521-0000

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Resources

Tax advantages of ESOPs as an exit opportunity for architecture and engineering firms

Stakeholders in mature architecture and engineering firms nearing retirement are bombarded with ideas from many advisors for the “best” exit option. Despite the owners’ desire to continue to run their firms as they always have and simply focus on their clients, they need to contemplate several key considerations of a solid and successful exit plan, which include: […]

Employee Stock Ownership Plans Financing

An ESOP is the only tax-qualified retirement plan that may borrow money. Both principal and interest, subject to limits, on debt incurred to purchase stock from a selling shareholder are deductible to the corporation. Therefore, due to the tax advantages afforded only an ESOP, most ESOP transactions are financed through borrowed (leveraged) funds. Senior Bank […]

THE RESURGENCE OF THE NON-LEVERAGED ESOP

ESOPs are projected to be the biggest transfer of wealth in U.S. history. A discussion regarding Employee Stock Ownership Plans (ESOPs) must contain the obligatory ESOP basics, including an ESOP definition, as well as the advantages to the seller, company and employees. This article will briefly do the same, but will focus mainly on the non-leveraged ESOP, […]

MANAGING THE ESOP REPURCHASE OBLIGATION

A company sponsoring an ESOP must “make a market” for vested plan participants. To ensure the success of an Employee Stock Ownership Plan (ESOP) as an employee motivational tool and as a means of corporate finance and succession planning, a company sponsoring an ESOP must “make a market” for vested plan participants who are entitled to […]

EMPLOYEE STOCK OWNERSHIP PLANS’ LEGACY FULL CIRCLE

ESOPs have the most advantageous tax benefit. Download Document A recent Price Waterhouse Coopers report indicated that 62% of the U.S. companies planning to sell all or part of their business will do so within the next 5-6 years. U.S. Department of Commerce’s 2010 statistics show that Pennsylvania’s Allegheny and the surrounding five counties account […]

ESOPS: THE IDEAL SOLUTION

Employee Stock Ownership Plans, or ESOPs for short, are gaining momentum as baby boomers look to transfer their businesses in a way that best suits their families’ goals and objectives. Many are family businesses that would like to perpetuate the business into the next generation or key management, but giving the business away is not […]

ESOP: A KEY PART OF YOUR BUSINESS SUCCESSION PLAN

ESOP // Employee Stock Ownership Plan // A qualified, defined contribution employee retirement plan designed to invest primarily in employer stock of a sponsoring company. Download Document ESOPs ESOPs provide an opportunity for business owners or shareholders to successfully plan an immediate or gradual tax advantaged exit strategy, while also engineering the continued success of […]

BOARD CONTROL OF 100% ESOP COMPANY

Does the ESOP Trust control the Board since they are the stockholders? Download Document The key component to control is the type of Trustee you choose once the ESOP is established. There are two types of trustees, independent and directed. An independent Trustee is independent of the current Board of Directors and has broad fiduciary […]

STEPS FOR IMPLEMENTING AN ESOP

Every ESOP plan is carefully designed to fit specific needs and is not a one-size-fits-all approach. The process varies in complexity depending upon the unique circumstances of the company, the owner, and the goals to be achieved. We insist on installing a succession plan that will work over the long term while maximizing benefits to […]

News Articles

State Explores Strategies to Prevent Businesses from Leaving Pennsylvania

HB 1289 would incentivize certain businesses to convert to employee ownership—preventing them from moving and saving jobs BTA’s own Dan Zugell leading the efforts to expand employee ownership in PA with pro-ESOP tax law changes HARRISBURG, PA – Pennsylvania’s House Finance Committee held an informational meeting on HB 1289 on June 19 at the Capitol Building in Harrisburg. The bill […]

Tax Advantages of an ESOP Exit Strategy with Daniel Zugell

Maybe we do a partial ESOP so they have an employment stake in it, they have an ownership stake in it, they act as owners, they grow value as owners, they appreciate it, they stick around, retention goes up, workers comp goes down.

Morton Buildings is now 100 percent employee owned

When Robert Bell went to work for Morton Buildings Inc. in Pearl in 1996, he was drawn by the fact that it was a family-owned business. “It was a large company, but it was not corporate America,” said Bell, who is construction center general manager for Morton Buildings Inc. in Pearl. “Just like UPS or […]

Lytle Signs now has 85 owners

TWIN FALLS, Idaho (KMVT/KSVT) For almost 70 years Lytle Signs was owned by a Lytle.   First it was Ray and Florence back when the company started in 1948. Then it was Rex and Emmie for about 50 years.   Under Rex’s guidance the company has grown. You’ve probably seen their signs. They make all […]

The Big Picture: What Comes Next?

If you’ve spent most (or all) of your professional career building a small- to mid-size business, and you’ve reached the point where you need to consider the “exit,” then you’d be doing yourself a disservice if you failed to consider an Employee Stock Ownership Plan, or “ESOP.” There are pros and cons to any plan, […]

All Things Financial Video Series with Dan Zugell

Watch Dan Zugell, from Business Transition Advisors, provide an overview of the history, intent and government position on Employee Stock Ownership Plans (ESOPs) as well as a profile of the typical ESOP candidate. Additionally, a summary of the four major tax advantages and the advantages to the seller, employees, company and community will be addressed. […]

Employees Take Ownership of Arlington Plating

By: Tim Pennington Source: PF Products Finishing   Arlington Plating is being recognized as a Products Finishing Top Shop not only for its rebirth as a major plating operation in the U.S., but also for its work in transforming its relationship with employees through an Employee Stock Ownership Program (ESOP) initiated in 2016.   About […]

Redneck Outdoor Products Forms Employee Stock Ownership Plan

Source: PR Newswire – Redneck Outdoor Products   LAMAR, Mo., March 24, 2017 /PRNewswire/ — Danny Little, CEO of Redneck Outdoor Products, Inc proudly informed employees on December 27th, 2016 that the Company has formed an Employee Stock Ownership Plan (ESOP) and, in doing so, has joined the growing list of companies whose employees are stakeholders.   […]

Why ESOPs Can Be More Than An Exit Strategy

By: Darren Dahl Source: Forbes   There’s an increasing amount of talk about the coming of the so-called “Silver Tsunami,” where thousands of businesses owned by Baby Boomers across the country will soon face a test of succession. One of the options those owners can consider is selling the business to their employees, rather than […]

Godshall’s, A Bacon Leader, To Become Employee Owned

Source: PR Newswire   TELFORD, Pa., March 15, 2017  — Godshall’s Quality Meats Inc. has announced plans to convert to an employee owned company. The owners, Mark Godshall, Floyd Kratz, and Ron Godshall took this extraordinary step to ensure that the company remains independent and maintains its unique culture. “It seemed like the next step in our […]