Why did you build your career around employee stock ownership plans (ESOPs)?
I spent several years in private equity before transitioning to ESOP investment banking. What drew me to employee ownership was the opportunity to make sophisticated corporate finance tools typically reserved for institutional buyers accessible to closely held businesses.
We combine tax strategy, access to capital markets, and overall corporate finance expertise to create liquidity, succession, and growth opportunities for middle-market companies. It’s an approach that can be tailored to a wide range of owner and stakeholder goals and ensures the continued independence of businesses.
We’re filling a market gap by expanding access to a powerful yet underutilized M&A option. Not to downplay private equity, but there are plenty of firms in that space. There are very few firms like ours (CSG Partners) doing what we do every single day. For me, that uniqueness and impact make my work incredibly compelling.
What’s driven your success at CSG and the firm’s success overall?
It really comes down to two things. First, we are highly selective in our staff recruitment and invest heavily in training our analysts and associates. We value homegrown talent who deeply understand CSG’s culture and fully embrace our analytical approach to ESOP advisory.
Second, there is no one-size-fits-all approach to meeting a client’s objectives at CSG. We draw expertise from the accounting, legal, consulting, and banking disciplines, and use employee ownership as a platform to deliver comprehensive solutions. ‘That’s not how it’s done’ isn’t in our vocabulary. We’re always looking for a better way to help our clients achieve their goals.
Our founder, Larry Kaplan – a former accounting consultant – embraced this approach over 25 years ago. It remains our guiding philosophy.
What advice would you share with someone who’s starting their career at CSG?
The first thing I tell anyone joining CSG is that ‘we brought you here because you have the capabilities and qualifications to succeed. Don’t second-guess yourself. Instead, focus on giving maximum effort for our clients.’
At the same time, I encourage new staff to ask questions. They should feel free to walk into anyone’s office, inquire about the challenges they’ve solved, and learn from their experiences. Curiosity accelerates growth.
Finally, I constantly tell junior staff to ‘use good judgment. Try to solve problems on your own, but know when to seek help. Find mentors who give candid, constructive feedback.’ That balance of independence and collaboration is key to thriving anywhere.
What is the biggest misconception about ESOPs?
Some accounting professionals and other trusted advisors still see ESOPs solely as employee benefits plans. What they often overlook is the utility of employee ownership as both a liquidity and diversification strategy for owners and as a succession planning tool for their companies.
So it’s important for accountants to research employee ownership before diving into an engagement. Get case studies, dig into real examples, and understand how ESOPs work in practice. Knowing the basics like tax benefits and plan structure is great, but go further: make it tangible. Ask, ‘How would this work for my client’s goals?’ That’s how you truly grasp the value of ESOPs.
The ESOP ecosystem has evolved significantly since I joined CSG. We’re seeing dedicated teams emerging in banks, accounting firms, and law firms nationwide. Credit markets have also adapted, creating specialized lending groups.
ESOPs still account for only about 0.5% of annual M&A transactions. To even double that to 1%, the industry needs far more professionals and adjacent advisors with a deeper appreciation for employee stock ownership plans. There’s been progress, but there’s still a long way to go.
What are the critical factors to implementing a successful ESOP strategy?
Upfront planning, objective alignment, and a clear understanding of tax, estate, and operations implications are key. It’s hard to achieve these benchmarks when you’re relying too heavily on limited ESOP experience. Professionals with limited exposure tend to apply a narrow set of approaches to plan development. Advanced tax planning techniques and structuring options – like partial sales – can be overlooked.
ESOPs are a highly specialized area of corporate finance, and failing to bring in an expert with broad experience can lead to missed opportunities and suboptimal outcomes. At CSG, we work with over 100 business owners each year on employee ownership strategies. We’ve seen and created countless transaction structures, plan rules, and financing packages.
Once an ESOP is in place, strong employee communication and education are essential. Plan participants must understand the benefit and how their actions impact value.
How do you collaborate with accounting professionals?
We’re often brought into a client’s circle of trust long after they’ve built strong relationships with their accountants. So, we quickly open lines of communication and exchange knowledge with their accounting partners.
Fostering these relationships provides our team with a better understanding of a client’s evolution, existing tax strategies, and entity structure. From there, we collaborate on reorganizations to ensure tax efficiency and alignment with ESOP goals. By aligning strategies and sharing expertise early, we create seamless, tax-efficient transactions for our mutual clients.
These partnerships can also create significant revenue opportunities for accounting firms. Tax consulting, assurance upgrades, quality-of-earnings reports, and plan audits often go hand in hand with serving employee-owned companies.
More broadly, ESOPs can deepen and strengthen accountant-client relationships. Instead of losing a client to a third-party sale, you help them achieve their legacy goals, care for employees, and position yourself as a trusted advisor who brought and executed a transformative solution.
What’s the best business advice you’ve ever received?
One of my mentors once told me, ‘Entrepreneurship can feel like being in a dark cave, lost and bumping into walls. Surround yourself with trusted partners who may not know your exact situation but have seen something similar. They can light a match and help guide you forward.’
That advice stuck with me. Even though I’m not an entrepreneur, it’s still a powerful lesson for all of us business advisors. Don’t go it alone; build a strong circle of support.
What has been your proudest professional achievement?
It’s hard to point out one specific moment, but there’s nothing quite like an ESOP rollout. Watching business owners express gratitude to their teams and employees realize they’re being recognized, not just with words, but with real equity, is incredible.
That mutual appreciation and the life-changing impact of employee ownership are unlike any other moments I’ve experienced in my career.
