deborah groban olson

Attorney at Law Specializing in employee ownership and cooperatives

deborah groban olson

Attorney at Law
Specializing in employee ownership and cooperatives

313-331-7821

313-331-7821

ESOPs

Fulton Tool and Die Co.

Example of Sub S ESOP Benefits

Complete buyout of a C corporation shareholder, followed by a corporate S election.

Mr. Fulton owns 100% of the shares of Tool & Die, Inc., a Sub Chapter C company worth $6 million. Mr. Fulton is getting older and would like to sell his company and enjoy the proceeds. If he sells to an outside buyer, he will pay taxes, perhaps at the 20% rate, on his net long-term capital gain. If his original basis in the stock was -0-, he would pay $1,200,000 and keep $4,800,000 after taxes.

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MBC Ventures, Inc.- Full Case Study

MBC Ventures, Inc. (formerly “Maryland Brush Company”)
A 100% employee owned old industrial company develops new green tech product with money saved as an S corporation ESOP.

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Carris Reels, Inc.: Full Case Study

Carris Reels, Inc.
Business Succession Major Decrease in Employee Turnover,
Employee Participation in ESOP Plan Design & Community Stewardship

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National Forge: Full Case Study

National Forge Company
Contract ESOP with Formula Vote for Union
Ended by premature sale of management shares

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Rosauers Supermarkets, Inc.: Full Case Study

Rosauers Supermarkets, Inc.
ESOP Organized As a Taft-Hartley Trust

In July 1990 several unions and management at Rosauers Supermarkets, a regional grocery chain of 15 stores headquartered in Spokane, Washington, entered into an ESOP buyout to save 1,250 jobs. The union buyout team was led by Sean Harrigan, then president of the UFCW local union. They developed some interesting procedures to ensure proper protection and representation of unionized employees interests in an employee owned company where high level management employees own a portion of the company outside the ESOP.

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