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Transitioning a Business: Is an ESOP Right for You?

Steven A. Migala and David G. O'Leary • March 24, 2023

A Lavelle Law Breakfast Briefs Presentation

Lavelle law breakfast briefs transitioning a business is an esop right for you

May 10

7:45 AM – 9:00 AM

1933 N. Meacham Rd.

Suite 127

Schaumburg, IL 10173

An Employee Stock Ownership Plan (“ESOP”) is a type of qualified employee benefit plan that is designed to invest primarily in the stock of the sponsoring company. It provides employees with an ownership interest in the company, giving them an incentive to be more productive. It is also a retirement plan and shareholder transition vehicle which may provide selling shareholders and the company with significant tax benefits. Join Lavelle Law attorneys Steven Migala and David O’Leary, together with GreatBanc Trust Company representative Steve Ryan, as they offer strategies for determining if an ESOP is the right structure for your business, or perhaps your client’s business. Topics they will cover include:

The benefits of an ESOP
What makes a company a good ESOP candidate
Tax benefits
ESOP financing
The parties involved in an ESOP transaction
Transaction responsibilities
Timing of an ESOP transaction

Doors will open at 7:45 for a complimentary continental breakfast and the presentation will begin at 8:00. Registration is required as seating is limited. No walk-ins. Register through Eventbrite using link below.

MEET THE PANEL

Steven Migala

Attorney Steven Migala is one of the shareholders of Lavelle Law, and is an experienced business attorney practicing in the following areas:

1. Corporate / M&A: Steve counsels business organizations in all stages of their life cycle, from start-up issues, contract negotiation and documentation, assets and equity sales/purchases, and mergers and joint ventures.

2. Banking: Steve represents banks and borrowers in commercial lending and workout matters, including negotiating and documenting a variety of loans and forbearance agreements, as well as handling foreclosures and other collection actions.

3. Real Property: Steve represents sellers, buyers, landlords, and tenants with acquisitions, dispositions, and leasing of real estate, as well as with related municipal zoning matters.

4. Estate Planning: Steve assists business owners with their succession planning and exit strategy, as well as their estate plans, probate, and trust administration.

Steve is a former chair of the Chicago Bar Association’s Corporation and Business Law Committee and is a Commissioner on the City of Elgin's Planning and Zoning Commission.

David O’Leary

Attorney David O’Leary has over 40 year’s experience advising clients on innovative and cost-effective ways of planning and solving problems with respect to ESOPs, ERISA, executive compensation, taxation, family business, and estate planning issues.

ESOPs - There are many parties to an ESOP transaction. Whether you are a company wanting to adopt an ESOP, a selling shareholder wanting to sell stock to the ESOP, a bank wanting to loan money to finance the ESOP transaction, or the ESOP trustee acting on behalf of the ESOP, Mr. O’Leary has the knowledge and expertise to advise you. He has been involved in all facets of the ESOP cycle and was the co-chairman of the ESOP Team at Holland & Knight, LLP.

Executive Compensation and ERISA - Mr. O’Leary has had significant experience with all types of benefit plans, including 401(k) and other qualified plans, nonqualified deferred compensation plans, and equity-based incentive arrangements. He is very knowledgeable of ERISA fiduciary liability issues, plan asset rules, avoidance of prohibited transactions, and multiemployer pension plan withdrawal issues. He provides clients with creative and practical solutions to all types of ERISA issues. He is the past chairman of the Chicago Bar Association Employee Benefits Committee. David is Bar certified in both Illinois and Florida, is a CPA, and was named Illinois Leading Lawyer in 2018.

Steve Ryan

Steve serves as a Senior Vice President in the Client Services group at GreatBanc, focusing on managing client relationships and ESOP transactions. Throughout his career, he has acted as a trusted advisor to many privately-held companies to assist them in growth initiatives, business transitions, and liquidity events. Steve has helped business owners transition their business via either an internal transition (ESOP/MBO/ Family) or external (strategic/PE/ Family Office). He has over 25 years of new business and banking experience with clients throughout the country. Steve has led commercial banking teams that interact with business owners and C-level executives of private and public companies. Throughout his career, he has acted as a trusted advisor to many privately-held companies to assist them in growth initiatives, business transitions, and liquidity events. Steve frequently presents on a variety of topics including board governance, ownership transition alternatives, financing ESOPs, and capital allocation in a wide variety of venues including the National Center for Employee Ownership (NCEO) The ESOP Association & The Private Directors Assoc. Steve is a board member on S7 an ESOP Company located in Idaho, & the Missouri Center for Employee Ownership. He also Chairs the National ESOP Committee for the Private Directors Association. In addition, he is a member of the Snow City Arts organization where he served as a treasurer. He is also a Board member of the Indian Boundary Y.M.C.A.

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