Business owners without a succession plan for their retirement can take advantage of a new program launched on Monday to provide them with the information, expertise and financial assistance they need to explore the creation of a property plan for employees.
The Rutgers Institute for the study of the possession of employees and the sharing of profits supports the new Jersey Economic Development Authority ESOP Assistance Program. Rutgers will educate business owners on the advantages of ESOPS and, for the first time, Njeda will provide financial assistance to eligible business owners who wish to create one.
An ESOP allows a business owner to sell the company to its employees via a trust, rather than selling external buyers. This has tax incentives and preserves the culture of the business they have worked in a lifetime to establish. Employees pay nothing. They receive actions in the company over time, building a long -term wealth. And as they now have a participation in the success of the company, they are motivated to work harder and stay longer.
Bill Castellano, associate director of the Rutgers Institute for the study of employees ownership and profits, described the program that was put online on Monday a “moment of transformation for business owners of New Jersey”.
“Our research shows that ESOP can improve performance and productivity, save jobs and help employees create wealth,” said Castellano. “The problem is that many business owners do not know that it is an option, or they do not have the money to hire a consultant to explore it. This is where this new program will help.”
New Jersey business owners with at least 20 full -time employees can Apply for the ESOP assistance program in Njeda And, if they are eligible, they will receive partially covered feasibility study to explore the creation of an ESOP. The Board of Directors of Njeda recently approved the program And associated with two companies experienced in ESOP Transitions, Onyx Partners Group and Lazear Capital Partners, to provide these services. The ESOP assistance program will cover 90% of service costs, up to $ 35,000. Funds are available for limited time only.
The Rutgers Institute for the study of the possession of employees and the sharing of profits and its technical assistance unit, the NJ / NY Center for Employee, will carry out direct awareness of business owners to raise awareness and the possibility of financing. Rutgers will also host a Free and informational webinar Wednesday May 28 at 1 p.m.
“The money tsunami arrives faster than we think,” said Adria Scharf, associate director of the Rutgers Institute for the study of the employee and the sharing of profits.
“Retired business owners do not have to close in stores or to sell to private investors,” said SCHARF. “An ESOP keeps the company in which they put their hearts and their souls and makes it even stronger. Employees are starting to think like owners because they are. And research notes that companies work better and that employees stay longer, when it occurs. ”
Paulo Rodriguez Heyman, member of the NJBIA, President and founder of Renova Environmental Company In Ocean Township, a ESOP launched four years ago and said it was a “win-win”.
“I converted paper wealth into diverse and delayed tax assets, while employees see real growth in their accounts,” said Heyman. “A supervisor noted that the efficiency of the project has a direct impact on its ESOP balance – a clear sign of property performance. When we have something, we care more. ”
