What Business Owners Need to Know About ESOPs – Kelly Finnell

Behind The Numbers With Dave Bookbinder

If you’ve ever wondered whether an ESOP could be the right succession or liquidity strategy for your business, this episode breaks it down in practical, owner-friendly terms. ESOPs continue to gain traction among business owners, advisors, and management teams looking for a tax-advantaged way to transition ownership while preserving company culture and leadership continuity. In this conversation, we take a clear-eyed look at how ESOPs actually work, who they’re right for, and the real impact they can have on company performance.

In this episode of Behind The Numbers With Dave Bookbinder, I’m joined by Kelly Finnell, president of Executive Financial Services and author of The ESOP Coach. Kelly has spent decades helping business owners evaluate ESOPs as part of their succession planning, and he brings both technical knowledge and real-world experience to the table.

We discuss:

• The biggest myths and misconceptions business owners have about ESOPs

• How ESOPs compare to private equity, competitor sales, and management buyouts

• The traits that make a company a strong candidate for an ESOP – and the red flags

• How ESOP valuation works and how trustees influence deal dynamics

• What business owners should know about deal structure

• The cultural impact of employee ownership and why engagement tends to improve

• How leadership should communicate an ESOP to build an ownership mindset

• The key tax advantages that set ESOPs apart from other succession options

• Where ESOP efforts tend to go off track and what owners should watch for

Whether you’re a business owner planning ahead, a manager interested in ownership culture, or an advisor guiding clients through succession decisions, this episode provides a grounded, actionable look at ESOPs from someone who has been in the trenches.

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About Our Guest:

Kelly O. Finnell, J.D., CLU, AIF® is one of the nation’s premier ESOP consultants, having spent more than 40 years helping business owners design and execute ESOPs. Kelly is one of the most sought-after speakers about ESOPs, with experience presenting at more than 300 conferences and meetings throughout the U.S. and abroad in London and Sydney.

An accomplished writer, Kelly wrote the preeminent ESOP book, The ESOP Coach: Using ESOPS in Ownership Succession Planning in 2010 and this work remains the most comprehensive guide to ESOPs today. Kelly has also published dozens of articles on the use of ESOPs in Ownership Succession Planning,
An active member of the National Center for Employee Ownership (NCEO) and The ESOP Association, Kelly is a consistent pillar of leadership in the ESOP community. Kelly has also served in leadership roles in numerous professional and community activities, including: President of the Memphis Chapter of the Society of Financial Services Professionals, Vestry Member and Treasurer of his church, President of Family Services of Memphis, as a member of the Board of Directors of Renasant Bank and the Economic Club of Memphis and on the Dean’s Advisory Council at the Christian Brothers University School of Business.

Kelly graduated magna cum laude from the University of Memphis and from the Cecil C. Humphreys School of Law. He earned the Accredited Investment Fiduciary- professional designation, awarded by the Center for Fiduciary Studies at the University of Pittsburgh.

About the Host:

Dave Bookbinder is known as an expert in business valuation and he is the person that business owners and entrepreneurs reach out to when they need to know what their most important assets are worth. Known as a collaborative adviser, Dave has served thousands of client companies of all sizes and industries.

Dave is the author of two #1 best-selling books about the impact of human capital (PEOPLE!) on the valuation of a business enterprise called The NEW ROI: Return On Individuals & The NEW ROI: Going Behind The Numbers.

He’s on a mission to change the conversation about how the accounting world recognizes the value of people’s contributions to a business enterprise, and to quantify what every CEO on the planet claims: “Our people are this company’s most valuable asset.”

Dave’s book, A Valuation Toolbox for Business Owners and Their Advisors: Things Every Business Owner Should Know, was recognized as a top new release in Business and Valuation and is designed to provide practical insights and tools to help understand what really drives business value, how to prepare for an exit, and just make better decisions.

He’s also the host of the highly rated Behind The Numbers With Dave Bookbinder business podcast which is enjoyed in more than 100 countries.

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