BDO United States

BDO United States

Tax Advantages of Employee Ownership

BDO Capital has a deep history of providing advisory services for shareholders considering either establishing or dissolving an employee stock ownership plan ("ESOP").

ESOPs are complicated entities and transaction types. The benefits that accrue to selling shareholders that adopt an ESOP can be pronounced. Tax savings such as the deferral of the gain resulting from the sale coupled with the deductibility of the principle payments associated with the funding of the ESOP can have substantial economic benefits to the shareholders. BDO Capital, along with its accounting partner BDO and its valuation services colleagues can provide turnkey planning, structuring, valuation and capital raising skills for the establishment of ESOPs.

The unprecedented financial crises starting in 2007 has created opportunities for non-employee owners of ESOPs. ESOP valuations have, in certain instances, seen dramatic declines affording shareholders the opportunity to buy back their previous ownership equity interests at advantage terms and prices. BDO Capital and its BDO affiliates can provide turnkey planning, structuring, valuation and capital raising skills for the repurchase of and dissolution of ESOPs.