Why Financial Advisors Need to Know About ESOPs

Posted by Aaron Juckett, CPA, CPC, QPA, QKA on Wed, Jun 10, 2020
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As a financial advisor, your sole responsibility is the financial health of your clients. For clients who own a business, that includes the eventual transition of their company to new ownership. Are you prepared to guide them through this transition and to handle the significant shifts in their portfolio that will inevitably come about?

Take control of the situation and offer solutions that satisfy your client and further establish your partnership with them for the long term by recommending an ESOP.   


[TRANSCRIPT]


Most business to business professionals are not familiar with ESOPs and the benefits of an ESOP.

We think it's important to get the word out for many reasons. No business is going to last forever from a business ownership standpoint. Every business owner is eventually going to have to do something. They're going to have to transition their business.

If they sell to a third party, you're going to be out a client. If they're acquired by private equity, you're going to be out a client. Transitioning to an ESOP provides continuity — continuity with the ownership team, the leadership team, and even that next round of management.

So you've got a choice. You can sit on the sidelines and watch this company get sold, Watch your client be sold to someone else and be out of a client. Or you can be a partner in the process, introducing them to the ESOP alternative, and helping the business owner, and the successor management, and the employees.

You could become the hero. You could become the one that's bringing the solution. This will help you retain a client and increase the satisfaction of that client.

 

To learn more about the succession benefits of an ESOP plan, download our free guide, 12 Benefits of Incorporating an ESOP in Your Business Exit Strategy. You will find in-depth, shareable information explaining why ESOPS are a viable option for retiring business owners.

Benefits of an ESOP as Business Exit Strategy eBook

Topics: Business Exit Strategy, Business Succession Planning

Aaron Juckett, CPA, CPC, QPA, QKA
Written by Aaron Juckett, CPA, CPC, QPA, QKA

Aaron is President and Founder of ESOP Partners and provides implementation, administration, and consulting services to hundreds of companies. He is a member of The ESOP Association (TEA) and the National Center for Employee Ownership (NCEO).

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12 Benefits of Incorporating an ESOP in your Business Exit Strategy

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