The Ownership Mindset: Choosing and Leading Employee Ownership

It’s estimated that 30% of privately held businesses will transition ownership in 2027. For business owners at this crossroads, the succession decision is not only about valuation, but also about legacy, control, culture, and what’s next for the people who helped build the business. This interactive workshop brings together Louis Grassi, CEO and founder of Grassi, one of the largest employee-owned CPA firms in the nation, and Keith Apton, managing director and founder of The Capital ESOP Group at UBS Financial Services, who has structured over $5.7 billion in ESOP transactions.
Both advise business owners on succession planning, bringing complementary perspectives to explore why ESOPs are an increasingly compelling succession option. They’ll address why an ESOP deserves your consideration through three core topics.
The Selling Conversation, or Addressing the Questions Owners Actually Ask: Lou faced a decision in 2023 that many other leaders have confronted: accept private equity investment (the industry trend) or take a different path. He chose employee ownership. At their respective firms, Keith and Lou guide business owners through similar decisions across industries, helping them weigh succession planning options and structure their employee ownership transitions.
This session walks through the decision framework successful owners use when evaluating exit options. We'll examine both financial outcomes and intrinsic value: What happens to company culture? How do you maintain control? What's your legacy? Lou will share his candid insights on why independence mattered, how he saw ESOPs change employees’ lives, and why the people who helped build the business should benefit from its success.
Dispelling Common Employee Ownership Myths: Through interactive discussion, we'll confront common misconceptions that cause owners to dismiss ESOPs: "I'll lose control." "It takes too long to get cashed out." "My company is too small." "This only works for certain industries." Using real case examples, participants will understand the outcomes that employee ownership creates. We'll demonstrate how ESOPs create alignment of interests across all stakeholders: owners gain liquidity while maintaining control and deferring taxes; employees build true wealth; management gains equity incentives; companies benefit from engaged ownership cultures.
Making It Practical: Tools, Tax Considerations, and Real Decisions: We will break down different ESOP approaches and explain tax advantages such as Section 1042 rollovers, S-corporation, and C-corporation exemptions in digestible terms, illustrating how structuring the ESOP works in practice. Participants will engage with an "Is your company a good ESOP candidate?" assessment checklist. Our panelists will share lessons learned from living in the world of ESOPs, candidly discussing what worked, what surprised them, and the lessons they learned while interacting with the audience in an open Q&A format. Whether you're exploring succession options, already functioning as an ESOP, or even advising others through this process, you'll leave with actionable decision tools, honest insights, and real stories that highlight why employee ownership is a compelling succession strategy for businesses committed to independence, culture, and true contingency.

NCEO Publication: Selling to an ESOP and Financing the Deal