The sale of a private business to an ESOP can seem like a very different beast than a typical business transaction. There are, of course, components of a sale to an ESOP that you won’t find in a third-party sale or a family transfer, but there also similarities. For this episode we talk with attorney Avery Chenin of SES ESOP Strategies who outlines, and demystifies, a sale to an ESOP. We discuss the process of selling a business to employees using an ESOP; what steps need to be taken; what professionals need to be involved; how long the process may take; and the financial benefits of an ESOP transaction for the owner, the business, and employees. There are two parts to the episode, the first is an outline of the process, and the second is an update that takes into account the current economic situation and how this impacts a sale to an ESOP
For more than 25 years, Avery has counseled businesses and their owners on how to incorporate employee ownership into their business succession plans. Currently, he works at SES ESOP Strategies, where he represents closely held businesses and their selling shareholders, ESOP sponsors and ESOP fiduciaries in transactions involving employer securities. Avery also works with companies and their owners in the planning, development, implementation and ongoing maintenance of ESOPs. He also helps clients with IRS and Department of Labor examinations and audits, and in the resolution of plan defects, including the submission of plan corrections under both the IRS and Department of Labor correction programs.
This episode of the Owners At Work Podcast is brought to you by:
The Owners at Work Podcast is a continuation of the biannual Owners at Work Newsletter which ran for 19 years (1990-2019). We are hoping to continue the same conversations and focus on providing updates on everything employee ownership. We plan to interview practitioners with expertise in different facets of employee ownership, academics doing new and interesting research, and most importantly, individuals who have a personal experience with employee ownership, including current and former employee-owners, mid-level to C suite management, and selling owners.
We want to produce a show that engages with relevant questions and provides practical lessons and information. We want this podcast to include the voices of those who practice employee-ownership each and every day. To that end we want to hear from you! We want to highlight what you are doing, whether you are an employee-owned company, a practitioner, or researcher.
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