ESOP Brief #3 - Tax Advantages for Business Planning

Raymond James is expanding the capabilities of its Investment Banking division by hiring Mark Buchanan to establish the firm’s ESOP Advisory practice. Buchanan will lead all ESOP-related M&A transaction advisory and execution efforts for its privately held institutional clients and support the firm’s financial advisors and their business-owner clients seeking ESOP-related expertise.

Taxes are never a topic people like to discuss, or if they do, it’s rarely a fun topic. Many sellers choose the ESOP alternative, at least in part, because of the tax benefits the option provides.

In a perfect world, all ESOP participants will complete a valid beneficiary designation form and update their designation when necessary due to life changes, i.e. marriage, divorce, etc. Unfortunately, the world is not perfect, and ESOP companies may have a participant who passed away without a valid designation in place. If this happens, it is important for you to know how to determine the proper beneficiary for the participant.

Working for an ESOP company is different. There’s a certain atmosphere that makes it hard to describe - whether it’s walking into a grocery store like Oliver’s in Sonoma County, California, making a visit to Mountain Hardware in Truckee, California, or visiting Bob’s Red Mill in Milwaukee, Oregon and watching the employees owners in action – there is a difference in the air.

The ESOP Association’s (TEA’s) Professionals’ Forum was once again a successful event for ESOP professionals to gather, share perspectives and insight, and network with peers.