Financing Your ESOP

When business owners decide to sell their businesses, they are usually left without a business legacy. Alternatively, if owners decide to bequeath stock to their children, then they will likely be without personal financial security and may be subject to significant gift or estate tax liability.

An effective solution to this predicament involves the use of an ESOP. An ESOP allows the owner to sell all or only a portion of the business to the employees in a tax-advantaged sale; retain actual or operational control of the company within the family; and significantly reduce gift, corporate or estate tax liabilities.

But that’s not all. ESOP financing also allows owners to:

• Gain liquidity with less financial burden on the company than with non-ESOP debt
• Diversify assets
• Defer capital gains on sales proceeds permanently
• Continue involvement in the company, if desired
• Create employee ownership
• Access creative sources of equity

Bank of America has a devoted team of lenders dedicated to providing ESOP design, feasibility and financing solutions. We represent business owners throughout the United States in a variety of industries evaluate their alternatives and how the ESOP can optimize shareholder objectives. With our experience in ESOPs, we can respond quickly so you can put your plans into action.

For more information, call (312) 904-8696 or email us at mary.josephs@bankofamerica.com.

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