ESOP for Contractors Podcast
A podcast series created to help company owners decide whether an ESOP is right for them. Brought to you by Tenor ESOP Partners. Includes real-world examples.
FREE Guide!
Maximizing the Value of Your Construction Business with an ESOP: A Financial Perspective
Plus, Your Path to Becoming a Tax-Free Company
What an ESOP will do for you and your construction business
An ESOP allows you to enjoy a sale that benefits both you and your employees by design, offering significant advantages:
- Protect your culture and team, ensuring your legacy outlives the name on the door
- Retain control post-closing until you’re ready to turn over responsibility
- Highly favorable tax treatment for the business and the shareholders
- Qualified retirement plan that also takes care of the team you’ve built
- Guaranteed fair market value for shareholders
- Flexible and customizable
- An opportunity to build incentive plans for future leaders
- Give your employees the gift of ownership without personal risk, and the ability to affect the value through their efforts on the job or in the office
ESOP FAQ's
What is an ESOP?
An ESOP is a retirement plan that gives employees an ownership stake in the company while offering owners an alternative to selling to a third party. Shares are allocated over time and converted to cash when employees retire or exit, in accordance with the plan.
How does an ESOP work?
An ESOP works by creating a trust to purchase shares of the company on behalf of employees, providing liquidity for owners while transitioning ownership over time. Shares are allocated to employee accounts and vest over time. When employees retire or leave, the company repurchases their shares at fair market value, providing a cash benefit.
Why should I consider an ESOP for my business?
An ESOP provides business owners with a flexible succession solution that creates liquidity while allowing them to transition ownership on their own terms. ESOPs also offer meaningful tax advantages that enhance transaction value and improve company cash flow. In addition, employee ownership strengthens alignment, retention, and long-term performance, while preserving the company’s culture and independence.
What is the role of an ESOP advisor?
An ESOP advisor leads and quarterbacks the entire transaction, guiding owners through structuring, financial modeling, and execution. This includes evaluating feasibility, designing the transaction, raising financing, and managing the process through closing. The advisor coordinates all parties—including legal counsel, the trustee, and lenders—to ensure the transaction is properly structured and successfully completed.
Are ESOP for Contractors and Tenor ESOP Partners different companies?
ESOP for Contractors is the dedicated construction practice of Tenor ESOP Partners. It focuses specifically on serving contractors and construction-related businesses, while operating as part of the broader Tenor ESOP Partners advisory platform.
Have a different question?
Gary Gray
Partner - Business Development and Construction Leader
Gary Gray is a Partner and leads the firm’s Construction Practice. Prior to joining Tenor, he founded and led a national contracting business that successfully transitioned to an ESOP, founded ESOP Consulting Group, a Post Transaction ESOP Consulting Business and served as an officer in multiple trade organizations. During his career as the CEO of an ESOP Contracting business, Gary achieved nearly 3x growth within five years following the transition to an ESOP and ultimately exited the business as the 2nd Largest Paint and Coatings Specialty Contractor in the United States according to ENR, October 2024. With years of experience consulting ESOP companies, Gary has helped shareholders create solutions customized to their business culture, aligned management with ownership goals, and designed sustainable Management Incentive Plans that drive growth benefiting employees and shareholders alike. Gary serves on a number of ESOP Boards and is a Certified Exit Planning Advisor (CEPA).
