Luke Haggerty
Luke brings more than 10 years of experience as a public accounting professional, including 7 years with a national firm. He specializes in partnership and corporate income tax compliance, accounting for income taxes under ASC 740, and tax planning and compliance for business combinations.
His additional areas of expertise include working with high-net-worth families and individuals, multi-state filing for Subchapter C consolidated corporations, closely held companies, and international tax compliance. Luke also has experience with exit planning strategies and tax due diligence.
He provides a full range of income tax compliance and planning services to a diverse range of middle-market clients, with a primary focus on private-equity-owned enterprises. Luke works with both public and private companies across various industries, including real estate, retail, hospitality, technology, biotech and medical devices, and legal services. In his free time, Luke enjoys boating, fishing, attending church, and spending time outdoors with his wife and children. Professional Qualifications & Memberships American Institute of Certified Public Accountants (AICPA) – Member Florida Institute of Certified Public Accountants (FICPA) – Member
Education Jacksonville State University – Bachelor of Science in Accounting
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What Is the Business Owners Council?
The Business Owners Council (BOC) is a collaborative network of experienced financial, legal, tax, and business advisors focused on one outcome: helping business owners build value and exit on their terms.
Founded in 2008 and inspired by the principles of strategic exit planning, the BOC connects entrepreneurs with coordinated expertise designed to align business growth with personal financial goals.
We don’t just help you grow your company — we help ensure that growth translates into lasting wealth.
Not sure if this is for you? Use the form to request a consultation if it isn’t the right fit, we’ll point you to better resources.
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Why an ESOP (Employee Stock Ownership Plan) Might be a Good Alternative for a Business Exit Plan
Why an ESOP (Employee Stock Ownership Plan) Might be a Good Alternative for a Business Exit Plan
Employee Stock Ownership Plans (ESOPs) can be an excellent alternative for business exit planning, providing unique advantages for business owners, employees, and the company alike. Here’s why an ESOP might be a smart choice for those looking to transition out of their business:
1. Gradual and Flexible Exit for Owners
Unlike traditional sales that require a full and immediate exit, ESOPs allow owners tosell theirshares gradually over time. This phased approach gives business owners the flexibility to plan their exit on their terms, remaining involved in leadership or decision-making as long as they desire. This gradual transition helps maintain financial security and allows owners to impart their knowledge and company values to the next generation of leaders.
2. Significant Tax Benefits
One of the strongest incentives for choosing an ESOP lies in its tax advantages. Owners who sell to ESOPs may defer or even avoid capital gains taxes under certain IRS provisions (e.g., Section 1042 rollover). For companies structured as S-Corporations, the portion owned by an ESOP is often exempt from federal income tax, which can dramatically reduce tax liability and free up capital for reinvestment and growth. Contributions to ESOPs used to buy shares or repay loans are tax-deductible, making the transition financially efficient for the business and owners.
3. Preservation of Company Culture and Legacy
ESOPs allow business owners to protect their company’s culture and identityby ensuring the business stays in the hands of those who care most—its employees. Unlike sales to outside buyers who might relocate, shrink, or dismantle the company, ESOP-owned firms are more likely to maintain local jobs and uphold company values. Research indicates ESOP companies have higher resilience in economic downturns, providing enhanced job stability and community continuity.
4. Employee Engagement and Retention
By converting employees into owners, ESOPs align employee interests with the company’s long-term success. Employees receive shares in retirement accounts without out-of-pocket contributions, promoting a sense of ownership, loyalty, and higher productivity. ESOP participants generally have larger retirement savings compared to employees in non-ESOP firms, helping recruit and retain talented staff.
5. Business Continuity and Stability
Because employees who know the company and its customers best remain in place, ESOPs often provide a smoother and more stable transition than external sales. This continuity benefits customers, suppliers, and the broader community by avoiding disruption in service and maintaining operational consistency.
6.Liquidity and Diversification for Owners
ESOPs create a ready market for business shares, allowing owners to access liquidity without an outright sale to external investors. Proceeds from the sale can be diversified into other investments, helping owners spread risk and plan their estates more effectively.
In Summary
An ESOP can be awin-win business exit strategy—offering owners a flexible exit with tax advantages while rewarding employees and preserving the company’s culture and community roots. For business owners valuing legacy, employee welfare, and financial prudence, incorporating an ESOP into their succession planning merits serious consideration.
