Transforming Individuals’ Lives since 2015

May 23, 2018


The Alliance
Partners Group
Experts in Employee
Stock Ownership Plans

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business owner thinking

What is an ESOP?

A tool of corporate finance and the most tax
beneficial succession vehicle for many companies

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Employee Stock
Ownership Plans

Numerous Federal tax incentives
encourage implementation

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No Debt

No cash payment from employees/No personal debt

Shares are purchased from owners using tax savings that are created with a properly constructed ESOP
Tax Incentives

Tax Incentives

If an ESOP owns 100% of an S Corporation, neither it nor the corporation is subject to income tax.

Common Transition Strategy

Alternative to selling to an outside, creates a succession plan with employee ownership.

What we Offer

We create life-transforming wealth and opportunities for others by helping companies convert to a properly designed Employee Stock Ownership Plan.

About Us

At the Alliance Partners Group, our team is made up of a wealth of experience in finance, sales, marketing, operations, and planning. Our goal is to expose businesses to the best options for succession planning, taxation structure, and capital generation. We provide opportunities for business owners to secure the legacy of their company and maintain meaningful equity control of the legacy assets for as long as they would like, while creating liquidity in the form of cash and notes for the owner at the time of the sale to the S-ESOP Trust as an example.

Transitioning companies to Subchapter S-Employee Stock Ownership Plans allows us to help companies ensure their future, increase their valuation, generate higher employee morale and pride, and assure the financial future for the owner and their business. By using the numerous Federal Tax and Congressionally mandated incentives through this unique tool of corporate finance we effectively create a tax qualified retirement plan for owners while giving the employees an opportunity to take a personal ownership stake in the company’s future success

What is an Employee Stock Ownership Plan

An ESOP is a retirement plan that is designed to provide employees with an ownership interest in the company for which they work by investing primarily in stock of the employer. ESOPs are unlike other retirement plans, which typically diversify their holdings by investing in a variety of assets. The ESOP is funded with tax-deductible contributions by the employer, which can be in the form of company stock, or in cash which is used to purchase company stock. An ESOP operates through a trust, under the direction of a trustee or other named fiduciary.

Why select The Alliance Partners Group?


Our Alliance Partners proprietary multi-stage financial modeling for each client’s specific needs, clearly sets us apart in this space.


We focus primarily on the use of Subchapter S-ESOP plans for middle-tier successful business enterprises, a unique plus for each client needs.


We have specific and focused legal, accounting and corporate tax practices, and have teamed to utilize our expertise in financial modeling.

Frequently Asked Questions

What is an ESOP (Employee Stock Ownership Plan)?

An employee stock ownership plan (ESOP) is an employee-owner program that provides a company’s workforce with an ownership interest in the company. In an ESOP, companies provide their employees with stock ownership, often at no upfront cost to the employees.

Can management stay in place?

Yes. The current executive team may stay in place for as long as they would like – subject to the approval of the Board of Directors (same as before the ESOP).

Will employees take over control of the business?

No. Employees do not become direct shareholders. The shares are held in a trust that is managed by trustees (typically the existing owners/executive team) on behalf of the employees. Therefore, the employees do not participate in management or economic decisions. The Company will operate just as it does today.

Why would Congress create legislation that reduces the taxes that the Government can collect?

The Government actually collects all of the taxes that they would otherwise receive – they will now receive it from a broader pool of beneficiaries. Employees will pay taxes on their distributions when they leave and the owners will pay taxes on capital gains as their debt is paid down.

Is there a prospect of getting some cash up front at closing?

Yes. Typically banks are willing to take on some of the shareholder note and provide cash to the owners at closing. Our experience suggests a range of 30-40% of the current equity valuation.

Is there a mechanism that enables current owners/management to participate in the value creation going forward?

Yes. The tax law allows current owners to collectively receive up to 49% of the future value creation (in the form of synthetic equity e.g. non-qualified options, SARS). Recognize that owning 49% of a Company that is not subject to tax is nearly equivalent to owning 100% of a Company that is paying ~ 50% in combined Federal and State taxes.