ESOP Finance
for your employee-owned company.
Explore the strategies and benefits of an ESOP
A succession plan that can benefit business owners—and employees.
For many business owners, establishing an ESOP can be an effective succession planning strategy that provides tax and employee retirement benefits, while fostering an employee-centric culture.
Fifth Third Bank’s ESOP Finance Group has been supporting clients through all stages of their Employee Ownership journey for over 20+ years. Whether you are seeking to form an ESOP or are already ESOP-owned, our thoughtful financing solutions start with a blank sheet of paper, since one size does not fit all. We diligently work with your 5/3 banker and your ESOP advisor to structure the right financing solution for your situation.
To learn more how we can help, please contact one of our ESOP Finance professionals:
Nick Jevic
Managing Director
513-604-7872
Nick.Jevic@53.com
Alex Polishuk
Director
513-253-3055
Alexander.Polishuk@53.com
How an ESOP Works
With an ESOP, a company creates a trust for the employees and allocates shares to eligible employees’ accounts, which are subject to vesting requirements. After participants leave the Company or retire they receive cash equal in value to the stock.
When an ESOP borrows money to buy company shares, it is called a leveraged ESOP. The ESOP may own any percentage of the company’s shares, and shares may come from the company and/or the selling shareholders.
Benefits of an ESOP?
- Flexible succession planning strategy
- Tax efficiency
- Attract, retain and reward employees
- Preserve company culture and legacy
- Certainty of transaction closing
- Achieve liquidity while continuing to run the business
At Fifth Third, we provide expertise and flexibility in constructing ESOP solutions, which include:
- Leveraged ESOP
- Non-leveraged ESOP
- Full and partial sale
- Second stage transactions
- Seller note refinance
Additional Resources
6 Steps of Transitioning to ESOP Ownership
How do I convert to ESOP? If you're considering the switch to an employee stock ownership plan, here are 6 steps to help your business through the process.
6 Reasons to Consider an ESOP for Your Business
Business owners can benefit from selling his or her business to employees using an employee stock ownership plan (ESOP). Here are 6 reasons to consider.
The Ins and Outs of Transitioning to an ESOP
If you're transitioning your business to an ESOP, here's everything to know about Employee Stock Ownership Plan structures, tax advantages, and more.
One bank for your needs
We support a variety of services for businesses looking to improve multiple aspects of their finances through the convenience of one bank that you can value and trust.
Explore all that Fifth Third Commercial Banking has to offer.
Learn More