Business Exit Planning & ESOPs
Planning Your Business Exit with a Tax-Efficient Strategy
As a business owner, you’ve dedicated your life to building a successful company. Planning your exit is one of the most important financial decisions you’ll make. Whether you’re selling to a third party, completing an ESOP sale to employees, or passing the business to family, we work with you to create a customized exit plan designed to reduce your tax burden, protect your wealth, and preserve the legacy you’ve built.
Selling Your Business & Exit Planning Strategies
A well-structured exit plan ensures you transition out of your business on your terms. We work closely with business owners to evaluate options, optimize outcomes, and minimize tax burdens. Common strategies include:
Third-Party Sale
Selling to a competitor, private equity firm, or strategic buyer.
Employee Stock Ownership Plan (ESOP)
Selling your business to employees for tax benefits and legacy preservation.
Management Buyout (MBO)
Transferring ownership to your leadership team.
Family Succession
Passing ownership to the next generation.
Initial Public Offering (IPO)
Transitioning into a publicly traded company.
Selling Your Business through an ESOP
An Employee Stock Ownership Plan (ESOP) allows you to sell your business to employees while deferring capital gains taxes and ensuring business continuity. ESOPs provide financial benefits to sellers, employees, and the business itself.
Key Benefits for Business Owners:
Sell at Fair Market Value with flexible transition timing
Defer or eliminate capital gains taxes with a 1042 Rollover
Maintain company culture and legacy
Secure employee loyalty and productivity
1042 Rollover: Tax-Deferral Strategy for an ESOP Sale
The 1042 Rollover, under IRC Section 1042, is a powerful tax-deferral strategy for business owners selling to an ESOP. It allows you to reinvest the sale proceeds into Qualified Replacement Property (QRP), deferring capital gains taxes and maximizing the final after-tax proceeds of the sale.
Key Benefits for Business Owners Using a 1042 Rollover:
Tax Deferral
Defer capital gains taxes on the sale of your business
Maximize After-Tax Proceeds
Retain more of the sale value for reinvestment or personal wealth
Diversification
Reinvest proceeds into a diversified portfolio of U.S. corporate securities (Qualified Replacement Property)
Legacy Preservation
Transition ownership to employees through an ESOP while ensuring your company’s culture and values endure
Estate Planning Advantage
Receive a step-up in basis upon death, eliminating deferred capital gains taxes for heirs
Post-Exit Wealth Protection
Estate Planning
Structuring trusts, family limited partnerships, and other legal entities to minimize estate taxes and protect your legacy.
Asset Protection
Reviewing and optimizing personal and business insurance coverage to align with your long-term goals and secure your financial future.
Wealth Preservation
Collaborating with your estate planning attorney or leveraging our network of professionals to ensure your plan is properly executed.
Explore More of Our Services
Retirement Income
Retirement is more than just reaching a savings goal—it’s about ensuring your money lasts and supports the life you’ve worked hard to build. For high-net-worth individuals approaching retirement, managing withdrawals, taxes, and investments effectively is crucial to preserving and growing wealth.
Tax Mitigation
We have a network of CPAs and tax attorneys that offer holistic tax planning. Together, our team and our network of tax professionals work together to develop a unified strategy for your overall financial picture.
Real Estate
We provide custom real estate investment solutions for high-net-worth clients with an emphasis on diversification and personalized strategies for tax mitigation, wealth enhancement and protection.