Kirsch CPA Group:
Independent & Employee-Owned

Under an Employee Stock Ownership Plan, employees become beneficial owners of the company stock in a qualified retirement plan that invests primarily in company stock. As firm owners, employees share in the growth and future success of the business and contributions are funded entirely by employer contributions – employees don’t need to buy stock.

You can learn more about this business model from the National Center for Employee Ownership, a nonprofit organization that generates research, thought leadership and education to support employee-owned businesses.

For employees, an ESOP creates an opportunity to share in the growth of a company and to benefit from a retirement plan funded entirely by employer contributions. Employees pay no taxes on ESOP contributions until they receive a distribution from their account.

For business owners, ESOPs can be structured to minimize corporate taxes and maximize cash holdings while providing competitive employee benefits and liquidity for shareholders seeking to retire. ESOPs can also have a positive impact on employee motivation, productivity and recruiting – and are more likely to carry on the firm’s culture and legacy than most other ownership transitions.

By adopting an ESOP structure, we ensure Kirsch CPA Group's continued independence and stability. This transition preserves our unique culture and service quality, avoiding the potential disruptions often associated with acquisitions or leadership changes. As an employee-owned company, we're reinforcing our commitment to our local roots, maintaining our focus on small to mid-sized businesses, and strengthening our ability to deliver value through our holistic client service model.

While the benefits of becoming an ESOP were clear, the complexity of the transition process was eye-opening. The journey to an ESOP is a significant undertaking. However, just as we counsel our clients, succession planning is one of most important things you can do for your business and it’s not a process that can be shortchanged.

By investing the time and resources into our ESOP transition, we've not only secured our firm's future but also deepened our understanding of the intricate dynamics involved in business succession. This knowledge will directly benefit our clients as we continue to provide expert guidance on this critical aspect of business planning.

Whether you plan to sell to the highest bidder, pass your business on to a family member or employee, or transition to employee ownership, it’s important that your succession planning starts early and is built on strategy, expertise and clear objectives.

While an ESOP requires a heavy lift of financial due diligence and planning, it’s a succession plan that provides both continuity and transition. An ESOP keeps a business intact and preserves an owner or founder’s legacy while also paving the way for a next generation of leadership.

An ESOP, however, is only one of many forms of transition that every privately owned business needs to go through at some point. If it’s time for you to start thinking about succession planning for your business, the Kirsch CPA Group can help you vet your options, with advice and strategic planning for mergers, acquisitions, partnerships, ESOPs, or a successor.

Kirsch works closely with business owners to help them identify the strategies that will help them reach their goals at every stage of the business lifecycle. We’re ready when you are.