Succession planning

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U.S. House Small Business Committee Holds Hearing on ESOPs

During a Congressional Hearing held today by the U.S. House Small Business Committee, ESOP Association member Daniel Goldstein, President and CEO of Cedar Rapids based Folience, gave testimony and answered questions regarding the Challenges and Benefits of Employee-owned Small Businesses. Goldstein, a member of TEA's Board of Governors and testifying on behalf of The Association, emphasized the

Kovatch Castings embraces ESOP to preserve company culture, family legacy

When Doug Kovatch began to ponder retirement a few years back, he found himself in a position not uncommon among many of today's leaders of family businesses. Kovatch, now 62, had been president at Kovatch Castings Inc., a Uniontown manufacturer started by his father in 1976, for more than 40 years. The second-generation owner was ready

How to create a construction company legacy

Every construction company and its owners eventually face succession issues. Owners who choose to ignore succession planning until an unexpected event forces the issue may face fewer choices, little time to react and a decrease in company value. However, proper planning can create peace of mind and increase the chances of a smooth transition that

Why a family-owned business should consider an ESOP

In the world of succession planning options, an employee stock ownership plan (ESOP) is an alternative to a third-party sale that warrants consideration from privately held business owners. An ESOP provides a tool for a business owner to create an internal, tax advantaged buyer for privately held stock without the need for the disruption of

What to consider when planning for an exit and an ownership transition

As business owners evolve in their life cycle, moving on from the business they built becomes top of mind. But what form that takes, and whether or not the end ultimately serves the owner’s retirement goals, are important questions to answer. Jim Altman, Middle Market Pennsylvania Regional Executive at Huntington Bank, says that’s why owners shouldn’t

Plan Your Succession

If you’re fond of sports analogies, think about how football teams hold players in reserve to back up other team members when they’re sidelined with injuries. Baseball clubs like to cross-train players in different positions to keep their squads versatile. As they contemplate moving on to the next stages of their lives, shouldn’t owners of

No Fable: ESOPs Gain Favor Among Business Owners Looking to Retire

After 20 years of running her consulting business, Jennifer Wise started to think about her next challenge: how to transition her company and retire. As the sole owner and founder of Wise Consulting — an HR and payroll consulting company — Wise said she started looking at options for the future of her business about

Principal launches adviser website to boost succession planning among business owners

The Principal Financial Group is seeking to involve advisers in its latest effort to get small business owners to plan ahead for their retirement. In an effort to boost the low level of succession planning among U.S. business owners, the Des Moines, Iowa-based insurance and financial services provider has launched a new website to help

ESOP Knowledge Can Provide Real Adviser Differentiation

When it comes to retirement and business succession planning, survey data shows clearly that small business owners have given relatively little thought to how they’ll shift into retirement or enact an exit strategy. According to Jerry Ripperger, vice president of consulting at Principal, more than 70% of business owners in the U.S. do not have

Power to the people: the rise of the employee-owned practice

At the end of last year, Allford Hall Monaghan Morris announced it had transformed its ownership structure by converting to an employee ownership trust.  The AJ100 big hitter is not the first to have handed over its equity to its staff in recent months. Indeed, figures from the Employee Ownership Association show that 15 of the top 100

Employee ownership trusts: is a tax-free business exit really possible?

For shareholders looking to exit from their companies, many challenges arise in finding the right buyer on the right terms, whilst continuing to operate the business throughout a sale process which may or may not eventually complete. Shareholders may believe that they need to secure a sale to a third party to unlock the financial

ESOP Can Spell Succession Success

When the founders of a company want to exit leadership, most look to sell, but many Kentucky companies have discovered the benefits of another, less common option: becoming an ESOP (Employee Stock Ownership Plan.) Companies that take that leap go from being privately owned, to being employee owned, with profits divided up yearly among employees

Boomer Entrepreneurs: Selling Their Businesses Without Selling Out

Another approach to local-centric ownership transitions: Employee Stock Ownership Plans or ESOPs. An ESOP is an employee benefit plan that invests primarily in the employer’s stock. The idea is that worker-owned companies will have a powerful motivation to maintain ties to the community. That’s certainly the case with Mann Lake, the world’s largest bee supply company,