ESOP-Owned Businesses

​Vrakas has considerable experience working with employee stock ownership plan (ESOP) companies and is well-versed in the challenges that can arise throughout an ESOP’s lifecycle.

Our team specializes in assisting clients with every aspect of ESOP management, from establishment through liquidation, to leveraging events (including re-leveraging), and to navigating future repurchase obligations, among other matters. With a collaborative approach, we work closely with ESOP attorneys, administrators, and valuation firms to ensure all professionals are aligned, which we believe maximizes our ability to serve our clients.

Vrakas is a proud member of The ESOP Association – Wisconsin & Illinois Chapters, and the National Center for Employee Ownership (NCEO).

ESOPs are tax-qualified retirement plans that invest primarily in the sponsoring company’s stock. Often, ESOPs are used as a financing tool to buy out the company’s founders and other majority shareholders. Utilizing an ESOP can be an attractive option to the sponsoring company due to several specific tax incentives that benefit both the company and the selling shareholder(s).

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Our Team of ESOP Professionals

Brad Weckwerth

Brad Weckwerth, CPA

President & Managing Shareholder

Mike Hall

Mike Hall, CPA

Shareholder

Nicole Gabriel

Nicole Gabriel, CPA

Shareholder

Paul Rothering

Paul Rothering, CPA

Shareholder

Andy Kamphuis

Andy Kamphuis, CPA

Shareholder

Like other tax-qualified retirement plans, ESOPs operate within the legal framework of the Internal Revenue Code (IRC) and the Department of Labor (DOL) regulations under the Employee Retirement Income Security Act of 1974 (ERISA). Vrakas has a deep understanding of this legal framework, allowing us to help our clients navigate the ongoing compliance challenges of operating as an ESOP.

Our expertise in this area also allows us to serve as a resource for you as questions and concerns arise throughout the year regarding ESOP matters (e.g., the intricacies of ESOP accounting rules, financial statement presentation, accounting journal entry, and cash flow implications).

Our services to ESOP-owned businesses include:

  • Audits, reviews, and compilations of the sponsoring company’s financial statements
  • ESOP employee benefit plan audit services
  • Tax planning, tax elections, compliance, and entity structure analysis
  • Transaction structure options analysis
  • Consulting and advisory services in applying ESOP accounting rules
Vrakas is one of our most valued business advisors. Their responsiveness is outstanding. As an ESOP, we need strong partners who understand the dynamics of employee ownership and the accounting complexities that come with it. Vrakas has helped educate our company on how to maximize the benefits of being an ESOP to help the company grow.
Kesslers Diamonds
We recently became an ESOP, so adding Vrakas CPAs + Advisors to our professional team, which included attorneys, trustees, a valuation firm, and an ESOP administrator, made the whole process a very smooth transition. Brad Weckwerth and all of the people at Vrakas have become integral members of our team. I can’t thank them enough!
Charleston | Orwig
Vrakas, with their ESOP expertise, has worked closely with our OwnersEdge finance team over the past 10 years. The teams work together to maximize the benefits of ESOP ownership. The Vrakas team is an exceptional group of people to work with and the entire audit process is smooth and efficient due to that expertise. If you are looking for an accounting firm, we would highly recommend them.
OwnersEdge, Inc.
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