Selling your business can be an emotional journey, and it's often the lack of knowledge of what comes after that causes anxiety. So, what happens after an exit?

Todd Goldman is the managing director of a boutique M&A firm specializing in ESOP advisory. ESOPs, or Employee Stock Ownership Plans, incentivize owners to transition their companies through Congress' 1042 legislation, enabling them to sell tax-free. This conversation covers the challenges and opportunities of private equity transactions and ESFs. Todd also dives into the goals of ESFs, including maintaining a sense of control, stakeholder value, legacy, and market liquidity for the business.

Tune in to learn more about exit strategies for business owners and employee stock ownership plans!

[00:01 - 07:25] Opening Segment

  • ESOP stands for Employee Stock Ownership Plan
  • Louis Kelso pioneered the concept in the 1970s to incentivize business owners to transition in a different way

[07:26 - 14:45] ESF Deals for Market Liquidity, Legacy, and Life of Relevance

  • Private equity is seen as significant on the front end but can be challenging to work with
  • The goals for ESFs include legacy, a life of relevance, culture, stakeholder value, and getting market liquidity for the business

[14:46 - 20:48] Generational Differences in Employee Ownership

  • Gen Z and Millennials view work relationships differently
  • Employee ownership is attractive to younger generations
  • Retention rates are higher in employee-owned companies

[20:49 - 27:04] Unlocking the Benefits of ESOPs

  • ESOPs are an excellent outcome for people-based businesses
  • ESOPs are an attractive option for owners who want to transition out of their business
  • ESOPs involve raising third-party financing with a bank and setting up a legal entity

[27:05 - 33:51] The Nuances of Business Transition Planning

  • Having the right influencers around the table is vital for closely held businesses
  • Goals must be discussed to understand what the business owner wants to accomplish

[33:52 - 35:49] Closing Segment

  • Todd's daily practice: yoga and sleeping well
  • Connect with Todd through the links below

Quotes:

"It's not the ability to keep a hundred dollars in your pocket. If you're thinking about the macro picture for your family, it's legacy. It's a life of relevance, it's the culture, and it's the stakeholder value." - Todd Goldman

"Don't put your head in the sand. Get the right people around the table. Do the education while you have time, and then be honest about your goals." - Todd Goldman

Connect with Todd!

Website: www.lazearcapital.com

LinkedIn: https://www.linkedin.com/in/todd-goldman-81a968149/

Download our FREE Strategizing for Inflation Guide here: https://www.excelsiorgp.com/download/

Connect with me on LinkedIn!

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