Employee Stock Ownership Plans

What kind of incentive program increases profitability?

ESOPs: Employee Stock Ownership Plans...

bridging the distance between striving and thriving.

...Today

How can successful business owners implement the innovative systems and practices that other top companies have used to enhance company value?

Davie Kaplan is a leading firm of Certified Public Accountants and business advisors with historical roots dating back to 1934. We have over 25 years of experience in dealing with the issues associated with managing an ESOP Company.

Why ESOPs Can Be an Instrument For Enhancing Company Value

Employee Stock Ownership Plans make it possible to:

• Improve employee productivity
• Use several tax advantages that improve cash flow
• Make acquisitions with pre-tax dollars and tax-free to seller
• Avoid paying corporate income taxes
• Provide management incentives
• Provide a competitive advantage
• Employee participation enhances company success

ESOP Myths:

• ESOPs must pay taxes
• Management loses control
• ESOPs cost too much money
• ESOPs are a burden to the company
• ESOPs are forever

ESOP Facts:

• ESOPs provide significant tax benefits
• Executives can maintain control
• ESOP shareholders are your most productive asset
• ESOPs provide a significant employee benefit
• ESOPs create a market for company stock
• ESOPs can be used to improve profits
• ESOPs can be reversed

Two for One: CPAs and ESOP Consultants

CPAs = Traditional Services

• Audits and Reviews
• Tax Preparation
• Tax Planning

ESOP Consultants = Valuable Advisor

• Profit Improvement
• Repurchase Liability
• Put Options
• Understanding the Numbers
• Management Incentives
• Gross Ups/Downs
• Tax-Free Rollovers
• Control Issues
• Diversification Issues
• Vesting, Eligibility
• Export
• Unbundling an ESOP

For more information, contact David C. Pitcher or Michael D. Agostinelli.