ESOP Basics
ESOP Benefits
ESOPs at Principal
Client Assessment

5 Ways ESOPs Can Benefit Advisors

Solidify your role as a trusted advisor

With so many benefits for business owners, you may want to know a little more about how implementing an ESOP for a client can benefit you as their advisor. Turns out there may be more ways than you might expect.

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Here’s a closer look at five ways an ESOP may help grow your business:

An ESOP often generates immediate liquidity and wealth for the owner and, eventually, many employees. This can lead to a potential recurring revenue stream for you.
Due to the involvement of a variety of key personnel required with an ESOP, it’s likely you’ll meet with the board of directors and C-suite. Demonstrating your expertise with this group could cement your relationship and lead to future opportunities, including advising their other retirement plans.
When setting up an ESOP, owners tend to review their management compensation packages. By facilitating these conversations, it can naturally lead to conversations about executive compensation plans and to helping those executives with their own retirement and estate planning.

Often ESOPs create needs for life and disability insurance.
 

By working with the client’s accountants, attorneys or banking contacts, you may be able to build new relationships along the way. This could ultimately help expand your referral sources.

A different way to grow your business

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There’s much more to an ESOP than simply the initial sale. By working closely with your client to put an ESOP in place, you’ll likely uncover a number of new opportunities to help grow your business.
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Next steps

To take advantage of some of the opportunities created through helping clients and prospects set up an ESOP, let our team of experts help you. E-mail our Advisor Support Team or call 800-952-3343, option 2.