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Employee Stock Ownership Plans (ESOPs): Now Even Greater Tax Savings When Selling Businesses


Product Code - LGA205
Speaker(s): Brian D. Hector, Morgan Lewis & Bockius LLP; Michael G. McCarthy, Wells Fargo Advisors, LLC
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With careful planning, tax practitioners can help owners of a business sell their stock to an ESOP without having to pay tax at the time of the sale on all or part of the realized gain. Using ESOPs may allow clients to save potentially millions of dollars in taxes and create a company that is exempt from federal tax at either the corporate or the shareholder level.

The faculty for this program will discuss what you need to know to better advise your clients about the use of ESOPs. Gain specialized knowledge on sophisticated transactions involving ESOPs.

Educational Objectives:

• Understand the tax savings to an individual shareholder when selling shares to an ESOP.
• Learn the tax benefits to the company both as a C corporation and as an S corporation.
• Discover the mechanics of ESOPs and investing in proceeds.
• Find out how corporate governance can remain the same after an ESOP sale.

Who would benefit most from attending?

Tax advisors such as CPAs and tax attorneys; estate planners; and investment advisors who have middle market private companies as clients, particularly companies whose owners are looking to either sell the business or pass ownership or control to management or family members.

Program Level: Intermediate (It is assumed that registrants have a working knowledge of ESOPs and their tax advantages as well as of the Internal Revenue Code. Specific tax code sections will be referenced.)

Delivery method: Group Interactive Live
Recommended credit: 1.5 credits

Brian D. Hector, Morgan Lewis & Bockius LLP; Michael G. McCarthy, Wells Fargo Advisors, LLC

Brian D. Hector, Morgan Lewis & Bockius LLP
Brian Hector is a partner with Morgan Lewis, practicing from the firm’s Chicago office. Mr. Hector co-chairs the firm’s ESOP Task Force. He is a nationally recognized ESOP attorney and has advised many public and private ESOP companies with regard to corporate governance, succession planning strategies, ownership transition, and liquidity transactions. Mr. Hector has served as counsel to companies and shareholders regarding the use of ESOPs in numerous transactions, including equity repurchases, ownership succession transactions, leveraged buyouts, mergers, acquisitions, and corporate reorganizations. He has also represented lenders and trustees in ESOP transactions.

Mr. Hector is also an adjunct professor at John Marshall Law School teaching in the area of executive compensation. He earned a J.D. from the Illinois Institute of Technology, Chicago-Kent College of Law and a B.A. from the University of Illinois. He is admitted to practice in Illinois and before the U.S. Tax Court.

Michael G. McCarthy, Wells Fargo Advisors, LLC
Mike McCarthy specializes in helping clients with thorough retirement and investment planning. He combines experience and knowledge to provide appropriate and customized investment strategies. In addition to serving his clients, Mike formerly served a branch manager. He later stepped down from that management position in order to focus more time and energy on ESOPs.

Mr. McCarthy serves as an instructor for the investments section of DePaul University’s CFP® courses and also is the Director of the Financial Planning Education Center for DePaul. He has served in various capacities for the Financial Planning Association (FPA) and is a member of the National Center for Employee Ownership (NCEO) and of the ESOP Association.

Mr. McCarthy earned a bachelor’s degree in finance from Loyola University of Chicago and holds CERTIFIED FINANCIAL PLANNER™ professional certification.

For information about continuing education credit, please visit the Continuing Education Information page.

• Registrants seeking CLE credit will, at the conclusion of the program, be able to apply directly through the webinar interface.

• Registrants seeking CPE credit should, at the conclusion of the program, visit attend.bna.com.