Small business owners are entrepreneurs who excel at establishing and running their operations. But despite their dedication to creating company value, exit planning often takes a back seat.

Many business owners automatically look for an external buyer, but the current small business buyer system is insufficient. Eighty percent of listed businesses do not sell. What if the best potential buyers are being overlooked? These buyers are already experts and invested: current employees.

Enter Employee Stock Ownership Plans (ESOPs).

ESOPs provide a flexible means of profitably selling a business and rewarding employees. But they’re often underutilized or misunderstood. A lack of awareness, the complexities of ESOP implementation, and the perception that ESOPs are mainly for large corporations have contributed to this problem. Sharevance is changing the narrative and simplifying the small business path to ESOPs. At the heart of the company is a dynamic team with diverse expertise that has come together to make ESOPs more accessible to local businesses.

The Powerhouse Team

Sharevance is led by visionary co-founder and CEO Rosanna Leroe-Muñoz, who boasts an extensive financial services background. Her career has been marked by driving product and revenue at successful companies in the fintech space. This is showcased through her roles as Head of Product at Vanguard, Chief Revenue Officer at Just Invest (acquired by Vanguard), and leadership roles at Provide (acquired by Fifth Third Bank) and Guideline (Seed to Series C). Before fintech, Rosanna started her career at Merrill Lynch and JPMorgan.

Joining Rosanna is co-founder and COO Abigail Wall, who brings invaluable SMB expertise, a strategic mindset, and technical skills to tackle this regulated space. With an MBA, experience as a consultant with BCG, a Master's in Computational Data Analytics, and industry-leading Privacy Certifications (CIPP/US), she offers a unique blend of skills. Having spent over 16 years as a business owner serving 4,000+ SMB customers, Abigail is the ideal co-founder to evangelize Sharevance's mission to small business owners while deeply understanding their specific needs.

The ESOP Difference

Sharevance's core offering revolves around Employee Stock Ownership Plans. ESOPs are an innovative approach to transferring business ownership from the owner to employees. Unlike traditional stock option plans commonly used in venture-backed startups, ESOPs offer unique advantages:

• No Out-of-Pocket Costs: Employees don't pay out of pocket to become company owners. Ownership is acquired over time per a vesting schedule, eliminating the financial burden of stock options.
• Tax Advantages: ESOPs are structured as qualified plans, governed similarly to 401(k) plans. This makes them eligible for tax benefits at multiple levels, including benefits for employees, the company, and the employer. These tax advantages set ESOPs apart from stock options and can create substantial savings for all parties.
• Liquidity for Small Business Owners: ESOPs provide a unique opportunity for small business owners. They can gradually sell their shares to their employees, with the purchase funded by pre-tax company capital. In contrast, stock option plans require secondary offerings in each funding round for owner liquidity.

Sharevance, led by Rosanna Leroe-Muñoz and Abigail Wall, is dedicated to simplifying the path to ESOPs for small businesses. Their collective expertise, combined with the unique advantages of ESOPs, will facilitate more profitable small business exits and empower both business owners and their employees. To learn more, visit www.sharevance.com.