employee ownership. a unique exit strategy

ESOP Advisory

Prairie Capital Advisors is a nationally recognized advisor to owners of middle-market companies and ESOP fiduciaries considering an ESOP exit strategy. Prairie's professionals are very active in ESOP-focused organizations including The ESOP Association, the National Center for Employee Ownership (NCEO) and Employee-Owned S Corporations of America (ESCA)

WHAT IS AN ESOP?

An employee stock ownership plan (ESOP) is a unique strategy for business owners seeking liquidity.  Using an ESOP strategy allows the business owner to sell a fractional amount or the entire business to the employees. Eligible employees will be allocated common stock over a period of time based on a non-discriminatory basis.  ESOPs are typically funded and sponsored by the company. In other words, the employees pay nothing for the shares other than time and dedication to the company.  

ESOP’s have 3 Primary Traits

 

1

Liquidity Strategy

  • Owners can sell a fractional amount or the entire company to an ESOP
  • It’s a more controllable and friendly process compared to a third party sale
  • Provides continuity of corporate culture and company legacy

2

Tax Efficiency

  • Debt incurred by transaction is repaid with pre-tax dollars
  • 100% ESOP-owned S-Corporation does not pay taxes
  • Capital gains deferral on C-Corporation transactions if certain criteria is met

3

Retirement Plan

  • The ESOP is an ERISA protected retirement plan
  • Value within participants account grow tax deferred
  • Company is responsible for repurchase of all stock when employees leave

FEATURED CONTENT

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Since our inception, Prairie Capital Advisors has served business owners and ESOP Fiduciaries on endless ESOP matters

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Middle - Market Focus

Middle - Market Focus

Prairie Capital Advisors is dedicated to serving the investment banking and financial advisory needs of middle - market business owners

Ownership Transition

Ownership Transition

A successful transition needs a well-thought- out strategy. We will help define, shape, and implement a plan that meets your short-term and long-term objectives

Corporate Growth

Corporate Growth

Build or buy? It could be both. Prairie Capital Advisor’s strong relationships with debt and equity capital sources will help you realize your corporate growth strategies

Business Sustainability

Business Sustainability

Sustainability requires strategies that grow the enterprise and minimize risks. Prairie advises companies on strategies that result in long-term shareholder value