Retail Industry
Employee-owned companies operate with some of the most diverse and complex challenges an organization can face.
While Employee Stock Ownership Plans (ESOP) can be complex, they also have a number of benefits and implications—they can be a tool for succession planning, motivate or reward employees and more.
Whether it is communication with employees, coordination of the service providers involved, help with the employee stock ownership plan (ESOP) or managing the repurchase liability, it's important to understand the accounting and tax requirements that accompany this unique ownership structure.
How Does an ESOP Work?
An ESOP is a type of retirement plan that invests primarily in company stock and hold assets as a trust for employees. A company that is employee-owned will have an ESOP. These types of plans are particularly popular in family-owned businesses and profitable organizations.
ESOPs exist in all types of industries and come in all shapes and sizes. In fact, there are approximately 6,500 companies in the United States with ESOPs.
ESOPs are a great alternative to selling to a private equity firm or strategic competitor. Participants are beneficiaries of the stock, and the ownership and management teams continue to run the day-to-day of the business. When it comes time to sell, an ESOP allows employees to benefit from the sale of a business.
"What an awesome opportunity to prepare the company for the next 50 years with the employees as owners as we crossed the threshold on June 1, 2022. We couldn't have done that without Eide Bailly."
JEFF ECKROTH, CEO Eckroth Music
Why You Need to Use a Trusted ESOP Advisor
If your company is currently operating as an ESOP or thinking about becoming one, a knowledgeable business advisor who understands the nature of employee-owned companies is a must.
Eide Bailly not only understands the nature of ESOPs but also has 25 plus years of experience serving them. We currently work alongside employee-owned companies ranging from small to Fortune 500 companies.
Our services include:
- ESOP audits
- Consulting on ESOP accounting
- Entity and transaction structuring
- ESOP feasibility studies and more
We're here to help your employee-owned company succeed, with knowledgeable staff who understand the complexities you face.
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What Our Clients Say
As a growing ESOP organization, we rely on the valuable advice and consultation Eide Bailly provides to help us avoid the pitfalls that many companies of our size and aspirations encounter."
As an employee owned company, Scheels greatly appreciates the ESOP services provided by Eide Bailly and the expertise and knowledge in their firm. The Eide Bailly team truly works together to get us the solutions we need. We have utilized the ESOP services at Eide Bailly for many years and couldn't be happier."
Why Choose Eide Bailly?
- 25+ years of experience serving ESOPs
- Clients ranging from small businesses to Fortune 500 companies
- Access to all the ESOP services you need under one roof
- Top 25 CPA Firm
Our Clients
Manufacturing Industry
Consulting
Retail Industry
Construction Industry
Dealership Industry
❯❯❯RECORDED WEBINAR
Is ESOP a good fit for your organization?
Learn more about what an ESOP is, how it works, the key benefits and potential challenges and why you might consider an ESOP for your organization.
❯❯❯INSIGHT
The Truth About Employee Stock Ownership and ESOPs
You’ve probably heard of Employee Stock Ownership Plans (ESOP) but are unsure of the finer details. Here, we break down whether an ESOP could be the right choice for your company and culture and what you need to know about these types of plans.
ESOPs can be complex, but they’re also incredibly beneficial.
We have the resources to help you make sense of it all. Let’s talk.