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Demystifying the Employee Stock Ownership Plan

Demystifying the Employee Stock Ownership Plan

Show Notes Of Podcast

Show Notes

0:00 - Intro

0:55 - What is an ESOP?

1:30 - Who buys ESOPs?

2:10 - Who sets the price of ESOPs?

2:45 - How do they get funded?

3:25 - Who gets the shares?

4:26 - How do employees redeem their shares?

5:34 - The Capitalist Manifesto & the history of ESOPs

9:06 - What does the landscape for ESOPs look like today?

10:08 - How Richard got acquainted with ESOPs

10:59 - Why firms consider ESOPs & its key benefits

13:26 - What does control look like in an ESOP?

14:57 - Are there valuation requirements?

16:24 - At what size does it make sense to have an ESOP?

16:57 - What does liquidity look like for the employee?

17:31 - What does the typical client look like?

18:34 - The process of setting up an ESOP

19:58 - The steps of putting an ESOP into play

24:08 - Does corporate structure have an impact?

26:32 - Retaining upsides

28:28 - Are there broader benefits to having an employee owned company?

29:26 - Richard’s favorite transaction anecdote

32:44 - What’s the craziest thing you’ve seen in M&A? An ESOP transaction?

34:12 - Closing remarks and end credits

Explaining ESOPs, Their Pros, and How You Can Benefit From Them

An M&A Science Podcast

Hosted by Kison Patel

“When you’ve got everyone rowing the same direction to create a valuable enterprise and they’re being allocated equity in that enterprise they’re going to be able to monetize at a certain point in the future, you’re creating a win-win situation.”

On this Episode

Kison speaks with Richard Harmon, a Managing Director at CSG Partners. CSG helps owners of private, middle market companies achieve equity monetization while addressing personal goals. Richard has led a diverse career as a CPA, CFO, an entrepreneur, and is now an investment banker for the nation’s leading leveraged ESOP practice. He joined CSG in 2011 and has led transactions for a range of privately owned middle market businesses.  

In this podcast, Kison and Richard discuss how ESOPs can harvest equity, enhance liquidity, and create tax advantages. They also discuss the future landscape for ESOPs.

Explaining ESOPs, Their Pros, and How You Can Benefit From Them

An M&A Science Podcast

Hosted by Kison Patel

“When you’ve got everyone rowing the same direction to create a valuable enterprise and they’re being allocated equity in that enterprise they’re going to be able to monetize at a certain point in the future, you’re creating a win-win situation.”

On this Episode

Kison speaks with Richard Harmon, a Managing Director at CSG Partners. CSG helps owners of private, middle market companies achieve equity monetization while addressing personal goals. Richard has led a diverse career as a CPA, CFO, an entrepreneur, and is now an investment banker for the nation’s leading leveraged ESOP practice. He joined CSG in 2011 and has led transactions for a range of privately owned middle market businesses.  

In this podcast, Kison and Richard discuss how ESOPs can harvest equity, enhance liquidity, and create tax advantages. They also discuss the future landscape for ESOPs.

Show Notes

0:00 - Intro

0:55 - What is an ESOP?

1:30 - Who buys ESOPs?

2:10 - Who sets the price of ESOPs?

2:45 - How do they get funded?

3:25 - Who gets the shares?

4:26 - How do employees redeem their shares?

5:34 - The Capitalist Manifesto & the history of ESOPs

9:06 - What does the landscape for ESOPs look like today?

10:08 - How Richard got acquainted with ESOPs

10:59 - Why firms consider ESOPs & its key benefits

13:26 - What does control look like in an ESOP?

14:57 - Are there valuation requirements?

16:24 - At what size does it make sense to have an ESOP?

16:57 - What does liquidity look like for the employee?

17:31 - What does the typical client look like?

18:34 - The process of setting up an ESOP

19:58 - The steps of putting an ESOP into play

24:08 - Does corporate structure have an impact?

26:32 - Retaining upsides

28:28 - Are there broader benefits to having an employee owned company?

29:26 - Richard’s favorite transaction anecdote

32:44 - What’s the craziest thing you’ve seen in M&A? An ESOP transaction?

34:12 - Closing remarks and end credits

Related Resources

Virtual Data Room for M&A Advisors

Listen and Subscribe to the M&A Science Podcast

Now available on Spotify

Previous Episode
Next Episode

Explaining ESOPs, Their Pros, and How You Can Benefit From Them

An M&A Science Podcast

Hosted by Kison Patel

“When you’ve got everyone rowing the same direction to create a valuable enterprise and they’re being allocated equity in that enterprise they’re going to be able to monetize at a certain point in the future, you’re creating a win-win situation.”

On this Episode

Kison speaks with Richard Harmon, a Managing Director at CSG Partners. CSG helps owners of private, middle market companies achieve equity monetization while addressing personal goals. Richard has led a diverse career as a CPA, CFO, an entrepreneur, and is now an investment banker for the nation’s leading leveraged ESOP practice. He joined CSG in 2011 and has led transactions for a range of privately owned middle market businesses.  

In this podcast, Kison and Richard discuss how ESOPs can harvest equity, enhance liquidity, and create tax advantages. They also discuss the future landscape for ESOPs.

Show Notes

0:00 - Intro

0:55 - What is an ESOP?

1:30 - Who buys ESOPs?

2:10 - Who sets the price of ESOPs?

2:45 - How do they get funded?

3:25 - Who gets the shares?

4:26 - How do employees redeem their shares?

5:34 - The Capitalist Manifesto & the history of ESOPs

9:06 - What does the landscape for ESOPs look like today?

10:08 - How Richard got acquainted with ESOPs

10:59 - Why firms consider ESOPs & its key benefits

13:26 - What does control look like in an ESOP?

14:57 - Are there valuation requirements?

16:24 - At what size does it make sense to have an ESOP?

16:57 - What does liquidity look like for the employee?

17:31 - What does the typical client look like?

18:34 - The process of setting up an ESOP

19:58 - The steps of putting an ESOP into play

24:08 - Does corporate structure have an impact?

26:32 - Retaining upsides

28:28 - Are there broader benefits to having an employee owned company?

29:26 - Richard’s favorite transaction anecdote

32:44 - What’s the craziest thing you’ve seen in M&A? An ESOP transaction?

34:12 - Closing remarks and end credits

Related Resources

Virtual Data Room for M&A Advisors

Listen and Subscribe to the M&A Science Podcast

Now available on Spotify

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