{"version":"1.0","type":"rich","provider_name":"Acast","provider_url":"https://acast.com","height":250,"width":700,"html":"<iframe src=\"https://embed.acast.com/$/596ee8b36b3475a168b0d8f5/6a03c92fcaa0b0ea31f91095?\" frameBorder=\"0\" width=\"700\" height=\"250\"></iframe>","title":"How Business Owners Use ESOPs to Reduce Taxes on an Exit w/ Vistage Speaker Steven Nicokiris","thumbnail_width":200,"thumbnail_height":200,"thumbnail_url":"https://open-images.acast.com/shows/596ee8b36b3475a168b0d8f5/1778633049337-b96407c2-53da-42d6-82e5-dcf55f8ced41.jpeg?height=200","description":"<p>📚 Unlock the secrets to building wealth! My book and 12-module Masterclass cover everything I’ve learned about passive investing and creating financial freedom. Watch it on-demand for FREE: http://thewealthelevator.com/master</p><p><br></p><p>🤝 Join the Hui Deal Pipeline Club and get a one-on-one call with me to discuss your investment goals: https://thewealthelevator.com/club</p><p><br></p><p>Lane hosts CPA Steve Nicokiris (connected via the Vistage Network) to explain leveraged ESOPs as a tax-advantaged way for small business owners—often with $5–$10M exits—to monetize and diversify wealth that is frequently 80% tied to the business. They compare ESOPs with traditional M&amp;A sales and leveraged dividends, emphasizing ESOP flexibility to sell minority stakes, keep control, preserve legacy, and avoid finding an outside buyer. Steve outlines how ESOPs work (ERISA plan, trust structure, independent annual valuation, payroll-based share allocations and vesting), typical candidacy requirements (meaningful EBITDA, payroll, employees, ability to handle leverage and ongoing costs), and key pros/cons. They discuss special advantages for minority/women-owned businesses, retention benefits, and major tax and estate-planning tools including C-corp conversion and the Section 1042 rollover to defer or eliminate taxes.</p><p><br></p><p>00:00 Why Exits Trigger Taxes</p><p>01:09 Meet Steve From Vistage</p><p>01:39 Where Owners Hold Wealth</p><p>03:21 Three Exit Options</p><p>06:34 Legacy And Your Why</p><p>07:22 ESOP Buyer Is Internal</p><p>08:47 Who Qualifies For ESOP</p><p>09:53 Minority Owned Advantage</p><p>12:41 What An ESOP Is</p><p>14:06 Valuation And Annual Costs</p><p>15:46 Funding And Share Allocation</p><p>20:21 Benefits Monetize And Retain</p><p>25:36 Downsides Complexity And Debt</p><p>27:23 Seller Notes Reality Check</p><p>27:46 Best ESOP Candidates</p><p>28:30 Ongoing Costs and Leverage</p><p>29:44 Dress Business ESOP Win</p><p>31:23 Estate Planning Value Drop</p><p>32:31 Professional Services Fit</p><p>34:06 Fair Market Value Explained</p><p>35:43 Owner Commitment Required</p><p>37:11 Engineering Firm Numbers</p><p>39:42 ESOP as Bridge Strategy</p><p>41:36 Tax Benefits and 1042</p><p>44:32 Gifting Exemptions Strategy</p><p>45:49 Trusts and Team Approach</p><p>46:58 1042 Rollover Mechanics</p><p>48:56 Wrap Up and Contact</p><p><br></p><p>Connect with me:</p><p>LinkedIn: https://www.linkedin.com/in/lanekawaoka/</p><p>Facebook: https://www.facebook.com/TheWealthElevator</p><p>Instagram: https://www.instagram.com/TheWealthElevator</p><p><br></p><p>Lane Kawaoka is a developer and multi-family syndicator who owns 10,000+ rental units and is the leader of “Hui Deal Pipeline Club” which has acquired over $2.1 Billion AUM of real estate by syndicating over $200 Million Dollars of private equity and most importantly distributed more than $45M back to our investors since 2016. </p><p><br></p><p>Check out our Top-50 Investing Podcast, The Wealth Elevator.</p>","author_name":"Lane Kawaoka, PE"}