ESOP Consulting & Employee Ownership Solutions | National Expertise, Regional Insight
ESOPs
Employee Stock Ownership Plans (ESOPs)
An Employee Stock Ownership Plan (ESOP) can be a powerful way to reward employees, preserve company culture, and exit your business on your own terms. At SSG Companies, we help business owners nationwide evaluate, design, and implement ESOPs that work—both for the seller and for the employees who make the business thrive.
Why Consider an Employee Stock Ownership Plan?
- Tax efficiencies of getting capital out of the business using a 1042 exchange income tax free
- Wealth transfer tool used in conjunction with established estate planning tools
- Providing a means of superior retirement accounts for participants – average -- 2.5 times greater than 401(k) plans
- Potential tool for providing asset protection by diversification and asset protection entity planning
- Potential tool for the acquisition of other businesses
WHAT IS AN ESOP?
An ESOP is a qualified retirement plan that allows employees to become owners of the company through a trust.
For business owners, an ESOP can be an attractive succession strategy because it:
- Provides a market for your shares at fair value
- Offers potential tax advantages, including capital gains deferral under Section 1042
- Helps retain and motivate employees
- Allows the business to continue independently
But ESOPs are complex. They require thoughtful planning, financial modeling, and long-term support. That’s where we come in.
Our ESOP Services
SSG Companies provides end-to-end ESOP consulting in conjunction with Corporate Transition Consulting. We help you:
Evaluate ESOP Feasibility
We start by assessing whether an ESOP is the right fit for your company, employees, and long-term goals. This includes analyzing cash flow, valuation, and employee demographics.
Execute the Transaction
From valuations to financing, we guide you through each step of the sale process to the ESOP trust.
Ongoing Support & Administration
We remain involved after the initial sale, advising on plan updates, repurchase liability, and communication with employees and trustees.
Design the ESOP Structure
We work with your legal and tax advisors to design the right plan: contribution levels, vesting schedules, and trustee arrangements that align with your vision.
Fund Repurchase Liabilities
Over time, employees retire or leave the company, and the business must repurchase their shares. We help you plan for and fund this obligation, often using advanced life insurance strategies to protect cash flow.
Why Consider an ESOP as a Transition Path?
For many owners, selling to an ESOP provides a unique balance:
- It rewards employees who helped build the business
- It protects your company’s independence and culture
- It can be structured in stages, allowing partial liquidity now and full exit later
- It can deliver significant tax benefits for both seller and company
If you’re weighing a third-party sale, family succession, or other exit options, an ESOP may be worth exploring.
Who We Serve
We consult with privately held companies across the U.S. and have deep experience with businesses in Louisiana, East Texas, Arkansas, Oklahoma, and Florida. Many of our clients are owners of closely held companies with $20M+ in revenue who want to plan their exit proactively.
Resources for ESOP Planning
Funding ESOP Repurchase Liabilities »
How to manage the long-term cash flow obligation
How sellers can defer capital gains taxes
Plan design, administration, and ongoing support
We also recommend reviewing our Business Transition resources if you’re still evaluating all possible exit strategies.
Learn More in Our Resource Library
Our Resource Library includes books and guides written by our team, including the Repurchase Liability Funding Study and Unlocking the Vaultby John G. Griffin, which explores ESOPs as a succession tool.
Is an ESOP Right for Your Company?
It’s not the right solution for every owner. But when it fits, it can be a legacy-defining decision. Let’s discuss whether an ESOP aligns with your goals and how we can help you design one that works.