Wealth Formula by Buck Joffrey

513: How to Sell Your Business Without Selling Out – The ESOP Strategy

6 snips
Jun 29, 2025
Matt Middendorp, Director of ESOP Consulting at VisionPoint Capital, dives into the intriguing world of Employee Stock Ownership Plans (ESOPs). He explains how ESOPs can help business owners sell their companies while maintaining control and enjoying significant tax benefits. Listeners learn about the mechanics of converting equity into liquidity and the advantages of seller financing. Middendorp also emphasizes the cultural shift needed for successful ESOPs, highlighting the importance of shared employee responsibility and financial education.
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INSIGHT

What Is an ESOP?

  • An ESOP allows business owners to sell their company to an employee trust, often with seller financing instead of upfront payment.
  • This structure lets owners cash out gradually with tax advantages and maintain control or legacy if they wish.
INSIGHT

ESOP Multifaceted Benefits

  • ESOPs are business transition tools, employee ownership vehicles, and qualified retirement plans with major tax benefits.
  • They help owners maximize return, retain control, and align employee and company financial interests.
ANECDOTE

Real ESOP Seller Financing Example

  • A client with four owners seller-financed their ESOP sale, lending money to the ESOP trust and getting paid back over 5-7 years.
  • They earned interest on the sale and remain involved while transitioning ownership gradually.
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