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All Things Financial Video Series with Dan Zugell

Watch Dan Zugell, from Business Transition Advisors, provide an overview of the history, intent and government position on Employee Stock Ownership Plans (ESOPs) as well as a profile of the typical ESOP candidate. Additionally, a summary of the four major tax advantages and the advantages to the seller, employees, company and community will be addressed.


Dan explains step by step how an ESOP works, how employees get company shares and how they cash in. Also, a more detailed look at the four significant tax advantages available to the sellers and/or the company will be discussed.


Dan provides a brief summary of the previous two ESOP sessions then dives into the important areas of corporate control, employee involvement, stock sale valuation, ESOP Trustee role, sale terms, board makeup and government oversight and regulations.


The final session discusses how the ESOP transaction is paid for through tax savings as well as the roles of senior bank financing and seller financing. The conversation also explores the current interest rate environment as well as significant seller incentives for bearing seller debt for the difference between bank financing and the sale price.