This week on #PoisedforExit we featured Nina Hale, a pioneer in the world of digital advertising, who sold her company Nina Hale to an ESOP in 2014. The company has been renamed Collective Measures and is growing strong, with many of the same employees who worked for Nina. She now sits on several non-profit Boards and helps educate business owners on what ESOP's are and are not.
ESOP is an acronym for Employee Stock Ownership Plan.
We certainly could have extended this interview longer; there's so much to talk about. What we did cover is essential for you to know, if you are considering an ESOP for your company.
Nina said ESOP's provide for significant tax savings for a company and its' owners and creates a winning situation for all stakeholders. But ESOP is not for everyone.
It takes competent advisers and a strong leadership team to pull this off, she said, and lots of hard work. Not everyone thinks that ESOP's are a good thing, especially younger generations who think more about buying a house than setting themselves up for retirement. You really have to make sure it's the right fit for most of your stakeholders as well as for you, the owner. Thus, the need for competent advisers!
Valuation calculations also differ between ESOP's and common external options. When selling to a Strategic Buyer, a Valuation would include more of the intangibles, like customer satisfaction, brand and human capital. An ESOP's Valuation weighs heavily on the financial side and not as much on the intangible side. When stock ownership will be shared by so many, there has to be enough assets up front to support the ESOP and keep it going.
Find out if ESOP is right for you by consulting with your trusted advisers and by listening to this episode now.
Find Nina here and find Julie here.
Thank you to our Sponsors! Baker Tilly & Sunbelt Business Advisors
Connect with Julie Keyes, Keyestrategies LLC
Founder, Consultant, Author, Pod-caster and Instructor
Popular Podcasts
On Purpose with Jay Shetty
I’m Jay Shetty host of On Purpose the worlds #1 Mental Health podcast and I’m so grateful you found us. I started this podcast 5 years ago to invite you into conversations and workshops that are designed to help make you happier, healthier and more healed. I believe that when you (yes you) feel seen, heard and understood you’re able to deal with relationship struggles, work challenges and life’s ups and downs with more ease and grace. I interview experts, celebrities, thought leaders and athletes so that we can grow our mindset, build better habits and uncover a side of them we’ve never seen before. New episodes every Monday and Friday. Your support means the world to me and I don’t take it for granted — click the follow button and leave a review to help us spread the love with On Purpose. I can’t wait for you to listen to your first or 500th episode!
Las Culturistas with Matt Rogers and Bowen Yang
Ding dong! Join your culture consultants, Matt Rogers and Bowen Yang, on an unforgettable journey into the beating heart of CULTURE. Alongside sizzling special guests, they GET INTO the hottest pop-culture moments of the day and the formative cultural experiences that turned them into Culturistas. Produced by the Big Money Players Network and iHeartRadio.
Crime Junkie
Does hearing about a true crime case always leave you scouring the internet for the truth behind the story? Dive into your next mystery with Crime Junkie. Every Monday, join your host Ashley Flowers as she unravels all the details of infamous and underreported true crime cases with her best friend Brit Prawat. From cold cases to missing persons and heroes in our community who seek justice, Crime Junkie is your destination for theories and stories you won’t hear anywhere else. Whether you're a seasoned true crime enthusiast or new to the genre, you'll find yourself on the edge of your seat awaiting a new episode every Monday. If you can never get enough true crime... Congratulations, you’ve found your people. Follow to join a community of Crime Junkies! Crime Junkie is presented by audiochuck Media Company.