ESOP Versus Private Equity: How an ESOP Sale can now Compete Dollar for Dollar with PE for Selling Business Owners
Bill Dunn
Live: One Dial-in One Attendee
Corporate Live: Any number of participants
Recorded: Access recorded version, only for one participant unlimited viewing for 6 months ( Access information will be emailed 24 hours after the completion of live webinar)
Corporate Recorded: Access recorded version, Any number of participants unlimited viewing for 6 months ( Access information will be emailed 24 hours after the completion of live webinar)
This webinar will provide an overview of the Employee Stock Ownership Plan (“ESOP”) sale process, including comparing an ESOP to a traditional M&A sale process and discussing new ESOP sale financing options.
Discussion topics include the following: options for today’s selling business owners, characteristics of a good ESOP candidate, similarities and differences between an ESOP and a traditional M&A sale process, critical steps and individuals involved in an ESOP sale process, and how ESOP transactions can be financed and structured to maximize seller cash at close. Why you should Attend: The question of, “Who should own the business after me?” is on the mind of a lot of business owners nearing retirement and considering a sale. When exploring this task, many selling owners perceive a conflict between family legacy, and business legacy. Naturally, many choose to prioritize family legacy and choose to sell to the highest bidder in an M&A sale process. This new owner could be a harsh competitor, or more likely, a ruthless private equity firm. Unfortunately, many sellers grow to regret this decision that was made unaware of a path that offers the best solution for both family and business legacy by selling the business to an Employee Trust a.k.a. “ESOP”. There is now an ESOP sale structure that provides the following:
- Equivalent sale price to private equity sale
- Equivalent cash at close to private equity sale
- Superior tax treatment to private equity
- Continued independence and control over business culture and legacy
- Identify the characteristics of businesses that should consider ESOP in a sale process
- Understand the tax advantages available to sellers in an ESOP transaction
- Understand how long a typical ESOP transaction takes to execute and the key individuals involved
- Identify key similarities and differences between an ESOP transaction and a 3rd party sale
- Understand available funding sources for an ESOP transaction
- President
- Chief Executive Officer
- Owner
- Partner
- Chief Financial Officer
- Controller
- CPA
Mr. Dunn previously worked in ESOP transaction advisory as a Senior Associate at Prairie Capital Advisors. He also has a background in private equity as an Associate with Resource Land Holdings. Mr. Dunn began his career in M&A advisory as an Analyst at Lazard and holds a bachelor’s degree in finance from the University of Iowa.
With Prairie Capital Advisors, a leading ESOP advisory firm, he worked on the 2023 Atlas awards winning ESOP deal of the year, Dental Designs. Mr. Dunn’s M&A experience includes advisory engagements with 3M, Levine Leichtman Capital Partners, and Heintz.