Employee Stock Ownership Plans (ESOPs)

If you are looking to transition your business and create greater personal liquidity, an Employee Stock Ownership Plan (ESOP) is an option for your company.

An ESOP is a form of a profit-sharing plan designed to invest primarily in employer stock. ESOPs are often used as a means of transferring ownership to employees as a succession planning technique.

They can also be used by business owners looking to create liquidity in their overall investment portfolios or for companies seeking a tax-favored financing alternative.  An ESOP gives employees a vested interest in the success of the company.

Making the decision to transition your business to employee ownership is a major step. Thoughtful and detailed analysis of the impact of an ESOP on you, as the business owner, on your employees and the tax implications of an ESOP is critical.

Not all companies are good candidates for employee ownership. An ESOP feasibility study can break down the complexities of an ESOP and help you determine if it’s a good fit.

We work closely with you and key advisors to help you make this decision. Once you are ready to move forward, CIBC Commerical Lending Group provides financing used by the ESOP to purchase company stock.

For more information contact:

Rosemarie M. Panico-Marino
Managing Director
(312) 564-3806