Ownership Transition - Other Retirement Plans | SG&F Law

Ownership Transitions

If you are a successful entrepreneur—and particularly if you are nearing retirement—you may be facing some important decisions: How can you diversify your wealth invested in the business you have built? And, what will be the ownership succession plan for your business?

Ownership transition options generally include:

  • Selling your company (possibly to a competitor)
  • Selling your company to private equity
  • Going public
  • Selling to management in a management buy-out
  • Selling to an Employee Stock Ownership Plan
  • Selling to employees through a worker cooperative
  • Gifting or selling the business to family members
  • Liquidating your company

Each of these ownership transition strategies comes with a unique set of advantages and disadvantages for the Company, the selling shareholders and the employees. SG&F can work with your existing advisory team to help you effectively explore these options to determine which option is a viable fit for your strategic goals and personal objectives.

If you are seeking a tax-advantaged approach that enables you to maintain your legacy and retain control of the business while providing liquidity for you as well as retirement benefits for your employees, an ESOP may be the best solution. You may find it useful to read ESOP FAQs, our overview of how employee stock ownership plans are structured and how they can deliver sustainable benefits to all stakeholders involved in your ownership transition.

For more specific information on the ESOP transaction process, read about Transaction Structure & Implementation.

Ready to Move Forward?

If you would like to learn more about how SG&F Law can guide you through the complexity
of exploring and installing an ESOP, please contact us.
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