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Employee Buyout (ESOPs)

Would You Like to Sell Your Business Tax Free?

Selling your business to your employees can be a powerful way to accomplish many of your objectives and minimize taxes at the same time. In some cases, an Employee Stock Ownership Plan (ESOP) may enable you to defer or completely eliminate paying capital gains taxes on the sale. 

Powerful Benefits of Employee Stock Ownership Plans

If you sell your business to your employees, an employee stock ownership plan (ESOP) can provide an attractive way to sell all or part of your interest in the business.  ESOP’s offer you several key advantages including:

  • Complete privacy because you are only dealing with one buyer, a trust set up for the benefit of your employees
  • You can remain in control until the ESOP buys you out completely
  • You receive full fair market value for your business, not a negotiated value with a third party buyer
  • You control the terms and structure of the transaction
  • Help retain and reward key employees
  • Your business receives significant tax advantages that can make it more successful
  • You can defer, or in some cases entirely eliminate, all capital gains taxes on the transaction

While ESOPs are a powerful exit option for many business owners, they are often overlooked because they require detailed planning and the coordination of multiple advisors to setup. But the benefits are often worth it.

Contact MidCap Advisors to learn if an ESOP is the right exit option for you.
 




































What Others Have to Say

"MidCap worked closely with each of us to ensure that the transaction maximized value and met each owner's goals."

James Hennessy, co-founder
Access Systems Integration

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