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Drive
Remarkable
ROI
Secure your future with the incredible tax benefits of an Employee Stock Ownership Program (ESOP) Learn more Services
The ESOP
Answer
Learn More Our tax-efficient ESOP structures combine short-term benefits with long-term wealth strategies that beat out other exit strategies. Services
Prioritize Your Role
Exiting doesn't mean giving up control. ESOPs allow you to stay involved in what you built, or not. We just make sure you get to decide your future. Learn more Services
Drive
Remarkable
ROI
Secure your future with the incredible tex benefits of an Employee Stock Ownership Program (ESOP) Learn more Services
The ESOP
Answer
Learn More Our tax-efficient ESOP structures combine short-term benefits with long-term wealth strategies that beat out other exit strategies. Services
Drive
Remarkable
ROI
Secure your future with the incredible tex benefits of an Employee Stock Ownership Program (ESOP) Learn more Services

Tailored ESOP Planning & Programs: Providing Expert Solutions

At MBO Ventures, our teams helped hundreds of companies transition to ESOPs, representing more billions in enterprise value and billions in ESOP debt—unlocking value for owners while securing a thriving future for employees.

As former CEOs, founders, and ESOP analysts, we understand what’s at stake. Our team has built and scaled businesses, overseen billion-dollar transactions, and worked across industries like petrochemical, storage, PaaS, accounting, and law. We’ve helped create tens of thousands of ESOP employee-owners while guiding businesses through complex ownership transitions, including mergers and acquisitions.

With deep ESOP expertise, we guide you through structuring your deal, securing financing, and ensuring the best outcome for you, your stakeholders, and your employees. Whether you’re considering a full or partial sale, we also invest in your firm to support long-term success.

From valuation to closing, MBO Ventures is your trusted partner in maximizing value and securing your legacy.

Get In Touch
01.What does MBO Ventures do?
We advise firms on alternative liquidity strategies. In addition to acquisitions, we specialize in ESOPs, helping business owners exit their companies on their terms.
02.How can an ESOP work for you?
With an ESOP, you can exit your company completely and defer capital gains tax. If you wish to transfer your firm to your children, you have the benefit of being able to get more cash out.
03.What are the tax benefits of an ESOP?
An ESOP enables you to run your company tax-free and do something amazing for your employees too. Both owners and employers receive significant tax breaks when you choose an ESOP.

Design Your Exit Strategy
Your Way with MBO

MBO is an ESOP investment bank that partners with mid-market companies in niche industries to structure and implement Employee Stock Ownership Plans (ESOPs). We seek market-leading firms with stable, defensible cash flows and work closely with their management teams to enhance profitability. Through our proven strategies, we transform these companies into tax-free entities while empowering employees to become owners.
Get In Touch

Work with the experts in ESOP structuring, planning, and implementation.

With over 25 years of experience, our team has structured more than 400 ESOP plans, representing over $25 billion in enterprise value and $7 billion in ESOP debt. We specialize in guiding businesses through ESOP-driven acquisitions, ensuring financial efficiency, tax benefits, and long-term stability. Whether you’re considering a merger, acquisition, or ownership transition, our experts deliver strategic insight to help you implement the right ESOP program and secure your company’s future.

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Solutions for most businesses

All Industries
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Cannabis

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Architecture & Engineering

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Construction

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Staffing & HR

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What Our Clients Say

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“Transitioning our cannabis company to an ESOP was the best decision we’ve made—not just for the business, but for our employees. Thanks to Darren and his expertise, our team now has a direct stake in the company’s success, and the impact has been incredible. Morale is higher, turnover has dropped, and our employees are thinking like owners. And financially? The tax benefits alone have dramatically improved our cash flow, giving us the ability to reinvest and grow. We couldn’t have done it without Darren’s guidance and deep understanding of both ESOPs and the cannabis industry.”

Cannabis Dispensary

Satisfied Client

“Darren and his team showed us how an ESOP structure could turn our employees into stakeholders—without them having to buy in—and the transformation has been remarkable. Our team is more engaged, productivity has surged, and we’re now operating completely tax-free, which has doubled our cash flow. This isn’t just a business move; it’s a game-changer for the people who built this company with us. Darren made the process seamless, and we’d recommend him to any cannabis business looking for a smarter, more sustainable exit strategy.”

Cannabis Cultivation & Manufacturing

Chief Finance

“As a business owner, I wanted to ensure that the employees who helped build this company had a real stake in its future. Darren’s team made that possible with a partial ESOP, allowing me to transition ownership in a way that benefits both the company and our team. Employees now have a tangible financial interest in the business, and it shows in their commitment and productivity. The structure Darren helped us implement preserved our company culture while giving us tax advantages that improve cash flow. Darren’s expertise and guidance made all the difference.”

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Frequently Asked Questions for ESOP Analysts

What is an ESOP plan?

An ESOP (Employee Stock Ownership Plan) is a benefit plan that allows employees to own shares in the company they work for. It’s often used as a succession strategy or employee incentive.

Is an ESOP a qualified plan?

Yes, an ESOP is a qualified retirement plan under IRS guidelines. This means it meets specific federal requirements and offers tax advantages for both employers and employees.

How does an ESOP program work?

In an ESOP program, a company sets up a trust to hold stock on behalf of employees. Over time, employees earn shares based on factors like salary or tenure, gaining ownership without having to invest their own money.

Are ESOP plans pretax?

Yes, contributions to an ESOP are typically made with pretax dollars, and employees do not pay taxes on their shares until they receive a distribution, usually at retirement or departure.

Are ESOP plans good for employees?

ESOP plans can be highly beneficial for employees, offering long-term financial rewards and a sense of ownership. They also serve as a retirement asset that can grow in value as the company succeeds.

How are ESOPs setup?

Setting up an ESOP plan involves working with financial and legal advisors to assess feasibility, determine valuation, structure the plan, and manage ongoing administration. It’s important to ensure the plan aligns with company goals and regulatory requirements. Contact us today to learn how MBO can help you and your business.

Is an ESOP considered a retirement plan?

Yes, an ESOP is considered a retirement plan. Like a 401(k), it helps employees build wealth over time, but instead of mutual funds, the investment is in company stock.

How are ESOPs Taxed?

ESOPs are tax-advantaged for all parties. Sellers can defer capital gains taxes (via Section 1042 for C-Corps), companies get tax deductions for contributions, and 100% ESOP-owned S-Corps pay no federal income tax. Employees are taxed only when they receive distributions, typically at retirement.

Get In Touch

ESOP News

MBO Ventures is your source for everything ESOP, acquisition and small business exit planning. Learn how to take advantage of ESOP tax savings, cases studies and more.

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We’re easy to reach and always happy to help

We invite you to call us with any questions you have or email us by filling out the form below. No question is too big or too small – whether you have a question about MBO Ventures or a question about ESOPs.

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Acquisitions
  • Investment Criteria
  • Current Portfolio
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  • Advisory Basics
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  • ESOP Funding
  • FAQ
About
  • Our Team
  • Video And Blog
  • Press
Common ESOP Solutions
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