As baby boomer business owners move toward retirement, Employee Stock Ownership Plans are getting more and more attention. An ESOP provides a flexible way for owners to exit their businesses, as well as to diversify their portfolios in advance of retirement.
An ESOP often creates numerous opportunities for financial professionals as well, including helping clients with planning, investing and protecting assets. Unfortunately, many business owners have a limited understanding of these plans and their benefits. Gaining a basic understanding of the plans may help guide an initial client conversation.
In addition to this tax benefit, there are a number of other potential benefits depending on how the business is structured, including: