Experience with ESOPS as a minority shareholder?

searcher profile

January 21, 2025

by a searcher from Northwestern University - Kellogg School of Management in St Paul, MN, USA

I am looking at an opportunity with a company that has an ESOP as a minority shareholder. There are members of the ESOP that I would like to roll equity into the new company post acquisition. I'm being told by the sellers that the ESOP will need to be dissolved in a sale. If that's the case, the individuals I would like to rollover equity will incur a taxable event and then would have to invest in a NewCo transaction that is tax inefficient.

Are there any experts in here that know if there is a way to liquidate an ESOP that is a minority shareholder while allowing some of those shareholders to roll their equity into a different vehicle in the NewCo without being taxed? If you have any experience in this, please feel free to dm me.

Thanks,
Derrick

0
3
41
Replies
3
commentor profile
Reply by a searcher
from University of California, Berkeley in Oakland, CA, USA
This directory could be helpful to you: https://www.nceo.org/service-provider-directory
commentor profile
Reply by a professional
from The University of Texas at Austin in Austin, TX, USA
Derrick, shoot me a note and I can get you connected. redacted
commentor profile
+1 more reply.
Join the discussion