Investing in companies via an ESOP Structure | Entrepreneur | Mentor | Investor | Business Developer at MBO Ventures - New York, New York, United States
An ESOP allows business owners to sell an interest to their employees. The owners receive massive tax benefits, and the company, if owned 100% by the ESOP is completely tax-free. MBO uses the leveraged ESOP to assist owners in getting liquidity out of their firms.An ESOP is a corporate finance vehicle that is made for private businesses. It's a way to cash out, and still run your company. You don't need to sell to sell your company to an outsider. You can sell as much or as little as you want, and maintain the same structure. Your family members can stay in or leave. • With an ESOP you won't need an outside 3rd party buyer. ESOP is the purchaser. No employee funds required. We use leverage.• You can defer your capital gains on the sale of the company indefinitely. • Earnings of the company are tax free and the loan is paid back with pre-tax dollars. Contact us and we'll give you an education