Private company life insurance clients with significant COLI who wish to remain independent but also must provide liquidity for some shareholder’s retirement, health or personal problems, etc., need to completely understand the ESOP option and how it provides shareholder liquidity while maintaining the private company’s independence.

ESOP Services, has been a premier provider of ESOP and related consulting services for over 40 years. ESOP Services’ four principals bring over 100 years of collective consulting and operational experience in their respective capacities as Chairman of the Board, President, and CFO at ESOP companies, as well as their prior and current consulting roles structuring leveraged ESOP transactions.

Larger, more complex ESOP transactions and related financial products and services mandate that life insurance companies ensure that field and home office personnel have up-to-date access to solutions for the many complex questions associated with ESOP formation, second stage transactions, repurchase obligation funding, equity incentives for key employees, distribution policy, plan termination, IRC 1042 “tax-free” rollover, C corporation vs S corporation status, and related tax concerns.

This includes ESOP-related marketing and consulting services for structuring leveraged ESOP transactions, including equity incentives attached to subordinated seller debt and/or awarded to key employees, that will motivate private company owners and key employees to consider the ESOP Option.

Sales of ESOP companies to private Equity Groups or ESOP Holding Companies, class action lawsuits, Department of Labor (DOL) investigations, etc. mandate that ESOP companies with significant COLI are structured to operate to minimize the possibility of an unwanted acquisition and mitigate the growing risk of costly and protracted litigation. The goals are to have the COLI “stick” and to avoid litigation.

ESI’s four principals have over a decade of involvement with class action law suits, DOL investigations and serving as an expert consultant successfully defending a major life insurance company in class action litigation as well as their current roles as consultants, independent members of Boards of Directors, Committee Chairs, and CPA advisor to hundreds of ESOP companies.