ESOP Radio

Menke
  • 5.0 (3)
  • Arts
  • Updated Biweekly

ESOP Radio is the official ESOP podcast—where real stories of growth, succession, and long-term wealth building are told. Hosted by Trevor Gilmore, CEO of Menke, and Ben Spadt, ESOP Investment Banking Consultant at Menke, the show features conversations with business owners, executives, and advisors who have navigated employee ownership as a strategic path forward. Episodes explore why companies choose ESOPs, how those decisions shape culture and continuity, and what it takes to build durable, long-term ownership structures. Alongside real-world stories, ESOP Radio examines the practical realities behind successful ESOPs, including fiduciary responsibilities, valuation, transaction structure, and regulatory considerations. ESOP Radio is educational in nature and designed for listeners seeking a clear, grounded understanding of employee ownership and long-term succession planning.

  1. 13h ago

    ESOP Legislation, Lending, and the 2026 Outlook: A Mid-Year Update

    Business owners considering an ESOP are operating in a noticeably different environment than they were a year ago. This episode covers three developments reshaping the ESOP landscape in 2026: a major shift in Department of Labor enforcement, several bills moving through Congress that address long-standing valuation and financing gaps, and new flexibility from banks that are lending to ESOP transactions. The hosts open with the Department of Labor's decision in January 2026 to remove ESOPs entirely from its national enforcement priority list, a change from years of heightened scrutiny to what they describe as a more principles-based oversight approach. They then walk through several bills working their way through Congress, including one that would define "adequate consideration" for closely held stock valuation, one that would remove ESOP contributions from standard defined contribution plan testing limits, and a proposed federal loan guarantee facility at the Commerce Department intended to close a persistent ESOP financing gap. On the lending side, the hosts discuss how banks are structuring ESOP loans more flexibly than in the past, using tiered commitments (sometimes called accordion structures) that release additional funding as a company meets its covenants, rather than requiring a company to renegotiate an entirely new loan. They also cover current interest rate ranges, the continued role of seller notes, and where valuation expectations stand for the second half of 2026. Listeners will come away with a clearer picture of the regulatory and financing environment ESOPs are operating in this year, along with specific caution points around valuation expectations before pursuing a transaction. Key Takeaways The Department of Labor removed ESOPs from its national enforcement priority list in January 2026, signaling a shift toward more predictable, principles-based oversight rather than heightened audit and litigation activity.The Retire Through Ownership Act (S. 2403 / H.R. 5169) would establish a clearer legal definition of "adequate consideration" for valuing closely held ESOP stock, letting fiduciaries rely in good faith on independent appraisals that follow IRS Revenue Ruling 59-60; the Senate passed it by unanimous consent in October 2025, and it is awaiting a full House vote.A separate bill, the Employee Ownership Fairness Act, would remove ESOP contributions from standard defined contribution plan limits (415 and 404 testing), reducing the risk of excess contribution refunds or excise taxes.A proposed federal loan guarantee facility, the American Ownership and Resilience Act (H.R. 3248 / S. 1645), still active in committee, would establish a zero-subsidy investment facility at the Commerce Department, similar in concept to FHA or SBA-backed lending, to help close the financing gap that has historically limited ESOP deal sizes.Banks are increasingly using tiered, covenant-based lending structures that allow additional funding to be released over time without requiring a new loan process, giving sellers more flexibility than a single fixed loan amount.Seller notes remain a common part of ESOP financing structures, typically paired with a senior bank loan, and delayed-draw note structures are now part of the available financing toolkit.Current ESOP senior loan rates are running in the high-4% to low-6% range, based on SOFR plus roughly 1.5 to 2.5 percentage points depending on company size and cash flow.Business owners should understand the difference between valuation (a range) and price (what a transaction actually closes at), particularly since most ESOP transactions are priced on a single-digit EBITDA multiple rather than speculative growth assumptions.Send us Fan Mail Learn more: ESOP Radio: https://www.menke.com/esop-radio/ESOP Boot Camp: https://www.menke.com/esop-boot-camp/Confidential feasibility review: https://www.menke.com

    29 min

  2. Jun 22

    What to Do With Your ESOP Wealth: Diversification, Retirement Income, and Protecting What You've Built

    Many ESOP participants spend years accumulating meaningful wealth inside a retirement plan they cannot easily access or sell. When the time comes to diversify or retire, the decisions made in that window can have significant tax consequences and long-term effects on retirement income. This episode examines what happens after the wealth is built — and how to approach it with clear eyes. Trevor Gilmore, CEO of Menke & Associates, is joined by Peter Newman, founder of Peak Wealth Planning, who has spent more than twelve years advising ESOP participants and business owners on retirement income forecasting, concentrated stock diversification, and intergenerational wealth planning. Newman brings a fiduciary perspective shaped by earlier work managing endowments within the University of Illinois system. The conversation covers the mechanics of ESOP diversification — including the age and tenure thresholds that determine when participants can begin selling shares, how payout schedules typically work, and what the tax consequences look like when a participant cashes out rather than rolling proceeds into an IRA. Newman also distinguishes between wealth creation, which for most ESOP participants happens largely on autopilot through company contributions, and wealth preservation, which requires more deliberate planning around income, expenses, insurance, and taxes. Listeners will come away with a clearer sense of what to do when an ESOP diversification window opens, what mistakes to avoid, and how to think about structuring retirement income across a multi-decade horizon. Key Takeaways Most ESOP participants become eligible to diversify up to 25% of accumulated shares at age 55 with at least ten years in the plan, and up to an additional 25% at age 60 — understanding this timeline matters for planning purposes.Cashing out a diversification distribution rather than rolling it into an IRA can trigger a 10% early withdrawal penalty before age 59½ and push a participant into a significantly higher tax bracket in that year.ESOP accounts are typically valued once per year, with share prices communicated to participants in summer and diversification elections occurring on an annual cycle — participants who miss the window must wait until the following year.After a participant declares retirement, there can be a gap of several months — sometimes up to 16 months depending on plan calendar — before the first distribution check arrives; having separate liquid savings helps bridge that gap.Peter Newman's rule of thumb: concentration builds wealth, diversification protects it. If an ESOP balance represents more than half of a participant's total net worth, the case for diversifying when eligible becomes stronger.The 4% withdrawal rule — roughly $40,000 in annual income for every $1 million saved — provides a useful planning benchmark for whether accumulated balances are sufficient to sustain retirement income without depleting the principal.Wealth preservation involves more than investment allocation: it includes liability insurance coverage, tax planning in retirement, and coordinating withdrawals so that taxes are withheld properly once paycheck withholding ends.Starting retirement income forecasting 10 to 15 years before a planned retirement date allows time to adjust savings rates or revise assumptions; waiting until two years out leaves little room to course-correct.Peter Newman, CFA is a financial advisor and the founder of Peak Wealth Planning. He works with individuals who have built their wealth through stock plan participation and business ownership –– guiding them through retirement income planning, management of concentrated stock and equity compensation, and multi-generational wealth transfer. His strength is turning complex financial decisions into practical strategies tied to each client’s long-term goals. He works closely with clients’ CPAs to build proactive tax planning into the picture. Before founding Peak Wealth, Peter managed the $700 million University of Illinois endowment, overseeing institutional investment strategy and portfolio management. He brings that same disciplined, fiduciary perspective to the families he serves today. Peak Wealth Planning website Youtube - Subscribe to Peak Wealth Send us Fan Mail Learn more: ESOP Radio: https://www.menke.com/esop-radio/ESOP Boot Camp: https://www.menke.com/esop-boot-camp/Confidential feasibility review: https://www.menke.com

    39 min

  3. Jun 8

    ESOPs Gain Momentum: DC Advocacy, New Legislation & a Strong Lending Market

    In Episode 23 of ESOP Radio, Trevor Gilmore and Ben Spadt discuss encouraging developments for employee ownership coming out of Washington, D.C. Ben shares insights from the ESOP Association's advocacy efforts on Capitol Hill, including proposed legislation aimed at expanding ESOP access through government-backed lending programs and increased contribution flexibility. The conversation also covers comments from Department of Labor leadership signaling a more favorable outlook toward ESOPs and employee ownership.  The hosts also dive into the current ESOP lending environment, highlighting increased competition among banks, favorable interest rates, and growing institutional support for employee-owned companies. Trevor shares what he's seeing firsthand while raising capital for ESOP transactions and explains why lenders increasingly view ESOP companies as attractive, lower-risk borrowers.  Finally, Ben shares the story of a recent 49% ESOP transaction that created 65 new employee owners while allowing founders to maintain control and gain liquidity. The episode showcases why employee ownership continues to gain momentum as a powerful succession planning and wealth-building strategy.  Key Takeaways  ESOP advocates met with members of Congress to support legislation benefiting employee ownership.  Proposed government-backed ESOP loans could improve financing access and transaction flexibility.  Department of Labor leadership indicated a more favorable stance toward ESOPs and employee ownership.  Industry efforts continue to clarify "adequate consideration" standards for ESOP transactions.  Banks are increasingly competing for ESOP lending opportunities with attractive rates and terms.  Employee-owned companies are often viewed as strong long-term borrowers with stable cash flows.  A recent 49% ESOP transaction allowed founders to maintain control while creating meaningful employee ownership. Send us Fan Mail Learn more: ESOP Radio: https://www.menke.com/esop-radio/ESOP Boot Camp: https://www.menke.com/esop-boot-camp/Confidential feasibility review: https://www.menke.com

    18 min

  4. May 26

    Do ESOPs Really Increase Productivity? New Research Says Yes.

    Do ESOPs actually improve company performance — or is it just theory? In Episode 22 of ESOP Radio, Trevor Gilmore and Ben Spadt break down new research from Rutgers University showing a measurable connection between employee ownership and increased productivity.  Drawing from large-scale Bureau of Labor Statistics data and years of ESOP company analysis, the study found that ESOPs produce meaningful productivity gains across a wide range of businesses — even when management structures differ significantly.  Trevor and Ben walk through the key findings and explain what they mean for:  existing ESOP companies  business owners evaluating succession options  and leadership teams building long-term employee ownership cultures The discussion also explores why ESOPs work best alongside strong communication, transparency, and incentive structures — not as standalone retirement plans. In This Episode  What the new Rutgers ESOP productivity study found  Why ESOP companies showed measurable productivity gains  How ownership percentage affects employee engagement  Why ESOPs can work across different management styles  The importance of combining ESOPs with bonus incentives  How transparency and communication influence results  What business owners should know before implementing an ESOP Key Takeaways  ESOPs were associated with productivity increases of nearly 7% overall  Larger ownership stakes correlated with even stronger gains  ESOPs performed well regardless of management sophistication  Pairing ESOPs with bonus structures produced stronger outcomes  Communication and transparency remain critical to long-term successSend us Fan Mail Learn more: ESOP Radio: https://www.menke.com/esop-radio/ESOP Boot Camp: https://www.menke.com/esop-boot-camp/Confidential feasibility review: https://www.menke.com

    14 min

  5. May 11

    Funding Entrepreneurship Through Retirement Capital | Jeremy Ames of Guidant Financial

    Entrepreneurship often begins with one major challenge: access to capital. In Episode 21 of ESOP Radio, Trevor Gilmore sits down with Jeremy Ames, CEO and co-founder of Guidant Financial, to discuss how business owners are using retirement assets to launch and acquire companies through rollover structures commonly referred to as ROBS (Rollovers as Business Startups). Guidant Financial has helped launch more than 35,000 businesses over the past two decades, giving Jeremy a unique perspective on entrepreneurship, ownership psychology, retirement planning, and long-term wealth creation. The conversation explores: How ROBS structures workWhy retirement capital is increasingly being used for entrepreneurshipThe ownership mentality shared by founders and ESOP companiesThe compliance and governance realities behind these structuresWhy Guidant chose to become an ESOP companyThe broader role ownership plays in financial empowermentRather than approaching ownership as a purely financial concept, the episode focuses on how ownership changes decision-making, accountability, and long-term thinking. For business owners, advisors, and entrepreneurs, this conversation offers a practical look at alternative ownership structures and the growing overlap between entrepreneurship and employee ownership. Send us Fan Mail Learn more: ESOP Radio: https://www.menke.com/esop-radio/ESOP Boot Camp: https://www.menke.com/esop-boot-camp/Confidential feasibility review: https://www.menke.com

    37 min

  6. Apr 27

    From Ultra-Endurance to ESOP Ownership: Building a Resilient Company with Dave Odell

    What does it take to build a company that lasts—and a team that truly owns it? In Episode 20 of ESOP Radio, Trevor Gilmore and Ben Spadt sit down with Dave Odell, CEO of MedBridge and CFO of Tynan Group, a 100% employee-owned company managing high-profile real estate development projects across the West Coast. Dave shares the story behind Tynan Group’s ESOP transition, including why a traditional sale didn’t feel right—and how employee ownership ultimately checked every box. But this episode goes deeper. As an accomplished ultra-endurance athlete (including the 106-mile UTMB race around Mont Blanc), Dave draws powerful parallels between endurance racing and running a business: navigating uncertainty, pushing through low points, and building long-term resilience. From ESOP structure to leadership mindset, this conversation is about playing the long game. Key Topics  Why Tynan Group chose an ESOP over private equity or strategic buyers  What founders often misunderstand about selling their business  Early results from employee ownership (culture, retention, performance)  Lessons from ultra-endurance racing applied to business leadership  Building resilience through uncertainty, downturns, and “low miles”  The importance of team, trust, and long-term thinking Send us Fan Mail Learn more: ESOP Radio: https://www.menke.com/esop-radio/ESOP Boot Camp: https://www.menke.com/esop-boot-camp/Confidential feasibility review: https://www.menke.com

    38 min

  7. Apr 13

    How M-Group Used Pre-Funding to Build an Orderly ESOP Transition

    What does an ESOP transition look like when a company starts planning early? In Episode 19 of ESOP Radio, Trevor Gilmore and Ben Spadt sit down with Jeff Bradley and Heather Hines of M-Group, a Bay Area urban planning firm that helps cities and counties shape long-term growth, land use, infrastructure, and livability  Because urban planners think in decades, M-Group approached succession the same way. In this conversation, they share why employee ownership aligned with the firm’s values, how they used ESOP pre-funding to reduce stress on the business, and what they learned about employee communication along the way  In this episode:  Why M-Group saw ESOPs as a fit for a people-driven professional services firm  How pre-funding created a more orderly transition and reduced debt pressure  What employees understood — and misunderstood — when the ESOP was introduced  Why the process increased financial transparency inside the company  How ESOP planning opened broader succession conversations across the firm  Whether employee ownership is helping with client confidence and recruiting One of the clearest takeaways: You cannot really start too early on succession planning. Considering an ESOP? Request a confidential preliminary feasibility review at Menke.com. Send us Fan Mail Learn more: ESOP Radio: https://www.menke.com/esop-radio/ESOP Boot Camp: https://www.menke.com/esop-boot-camp/Confidential feasibility review: https://www.menke.com

    33 min

  8. Apr 1

    Why ESOP Companies Command Higher Valuations in AEC

    AEC firms—architecture, engineering, and construction—are seeing a clear trend: ESOP companies are outperforming their peers on valuation. In this episode, Trevor Gilmore and Ben Spadt break down the 2026 data and explain why ESOP-owned companies are commanding higher valuations—and what that means for owners considering succession. In this episode:  Why ESOP companies see ~25% higher value relative to revenue  How backlog drives forward-looking valuation  The impact of S-Corp ESOP tax advantages on cash flow and value  How EBITDA multiples and cap rates are actually determined  Why ESOP companies often carry a lower risk profile This is a practical, data-backed look at valuation—not theory—and why many AEC firms are rethinking how they approach ownership and exit planning. Considering an ESOP? Request a confidential preliminary feasibility review at Menke.com Send us Fan Mail Learn more: ESOP Radio: https://www.menke.com/esop-radio/ESOP Boot Camp: https://www.menke.com/esop-boot-camp/Confidential feasibility review: https://www.menke.com

    14 min
See All (25)

Ratings & Reviews

5
out of 5
3 Ratings

About

ESOP Radio is the official ESOP podcast—where real stories of growth, succession, and long-term wealth building are told. Hosted by Trevor Gilmore, CEO of Menke, and Ben Spadt, ESOP Investment Banking Consultant at Menke, the show features conversations with business owners, executives, and advisors who have navigated employee ownership as a strategic path forward. Episodes explore why companies choose ESOPs, how those decisions shape culture and continuity, and what it takes to build durable, long-term ownership structures. Alongside real-world stories, ESOP Radio examines the practical realities behind successful ESOPs, including fiduciary responsibilities, valuation, transaction structure, and regulatory considerations. ESOP Radio is educational in nature and designed for listeners seeking a clear, grounded understanding of employee ownership and long-term succession planning.

Information

  • Creator
    Menke
  • Years Active
    2K
  • Episodes
    25
  • Rating
    Clean
  • Copyright
    © 2026 ESOP Radio
  • Show Website
    ESOP Radio

You Might Also Like