ESOP and EOT Sales of Companies

[Saluki]

There's been an interesting trend in private equity being involved in sales a company to it's employess, via the Employee Stock Ownership Plan in the US or Employee Ownership Trusts in Canada. It lets the seller/founder delay or avoid paying huge taxes too. The US law isn't going anywhere, but the Canadian law expires in 2026 unless it's renewed. 

 

The US one allows you to defer taxes, but the Canadian setup allows you to avoid paying taxes altogether.

 

Here's couple of articles on it that came out this week (where I'm quoted). 

 

https://ionanalytics.com/insights/mergermarket/private-equity-finds-stability-in-employee-owned-firms/

 

https://ionanalytics.com/insights/mergermarket/selling-to-workers-gains-traction-among-private-equity/

 

I've been trying to get quoted more in press to help with "answer engine optimization". While MergerMarket doesn't have the readership of CNN, I'm pretty impressed that I got in there. It's a niche publication, but according to Google, the subscriptions can run USD$15-20k per year. 

 

So as value investors, I hope you all enjoy these two freebies 

[brobro777]

11 hours ago, Saluki said:

There's been an interesting trend in private equity being involved in sales a company to it's employess, via the Employee Stock Ownership Plan in the US or Employee Ownership Trusts in Canada. It lets the seller/founder delay or avoid paying huge taxes too. The US law isn't going anywhere, but the Canadian law expires in 2026 unless it's renewed. 

 

The US one allows you to defer taxes, but the Canadian setup allows you to avoid paying taxes altogether.

 

Here's couple of articles on it that came out this week (where I'm quoted). 

 

https://ionanalytics.com/insights/mergermarket/private-equity-finds-stability-in-employee-owned-firms/

 

https://ionanalytics.com/insights/mergermarket/selling-to-workers-gains-traction-among-private-equity/

 

I've been trying to get quoted more in press to help with "answer engine optimization". While MergerMarket doesn't have the readership of CNN, I'm pretty impressed that I got in there. It's a niche publication, but according to Google, the subscriptions can run USD$15-20k per year. 

 

So as value investors, I hope you all enjoy these two freebies 

when you become famous and start doing CNBC, Bloomberg interviews, give a shout out to this place! 
 

haha