- How it works
- The ins and outs of ESOPs
- Common misconceptions explained
- Tips and tricks
- Risks vs. rewards
- How to avoid common mistakes
As baby boomers toe the retirement line, company ownership and succession planning becomes a necessary topic on the discussion table. There isn’t always an easy answer here – all business owners have different priorities when it comes to handing over the reins – but some options are more elegant and effective than others. ESOPs, or employee stock ownership plans, provide a compelling alternative, selling company ownership to employees while also offering an avenue for corporate financing and business perpetuation.
Business succession planning is a hot topic amongst enterprise owners today. You spent a lifetime building a company and took great care to make it the success that it is. You want to take the same amount of care in planning its transition from you at the helm to your chosen successor/s taking full control.
You’ve done your homework—you know what options are available to you. You know you don’t want to sell the business, and you also don’t want to close it.
And you’ve taken care to choose someone you really feel just “gets” your business and can take it into the future.
One of the options you’re strongly considering is an Employee Stock Ownership Plan or ESOP. But… you’re not entirely certain how it works or even if it’s the right plan for you.
You have a lot of questions. Will this type of plan be attractive to my employees? Will I have to give up too much control too soon? Would it be fiscally wiser for me to consider an outright sale to a third party? How much of my company’s confidential financial records do I have to expose to shareholders?
These are good questions. A wise company owner considers every angle before making such an important decision.
Check out our blog at http://www.gbhcpas.com/blog/esops-debunking-the-top-5-misconceptions to discover the five most common misconceptions about ESOPs.
As much as you love your businesses, you must admit that retirement is an attractive idea. You dream of relaxed mornings sipping coffee by a roaring fire or leisurely reading the newspaper on a sunny day with nothing calling us to abandon your leisure and get to work.
It can happen. For many of us, it will happen soon. But before we can fade into the glorious sunset of retirement, we have a job to get done.
We have to deal with the next step – what to do with the business.
Maybe you can’t yet imagine your business without you at the helm. It’s definitely hard to do. You’ve invested your life in the development of this entity. But whether you have five years or fifteen years before retirement, it’s important to start putting processes in place to ease the transition from a corporation you are 100% hands on with to a business that will become the responsibility of your successors going forward.
You need to start developing your exit plan.
No two businesses are exactly the same, and the design of your exit strategy will be as unique as the service that you provide. Here are four simple business succession concepts to consider in preparing your retirement plan.
Read more at http://www.gbhcpas.com/blog/4-valuable-strategies-for-business-succession-planning