Mark Kossow Explains ESOP vs. Private Equity: Which Exit Puts More Money in Your Pocket?

In today’s episode, Mark Kossow breaks down one of the most misunderstood strategies in business exits: the 1042 election. If you’re a business owner thinking about selling—to private equity or an ESOP—you must understand how this election can help you legally eliminate capital gains tax and potentially walk away with tens of millions more in your pocket.

We compare ESOPs vs. private equity, look at tax strategies that shift your net proceeds, and outline how smart planning can completely change your retirement and legacy.

💡 Top Takeaways

- The 1042 election lets business owners sell and pay zero capital gains tax.
- Selling to an ESOP can produce more net proceeds than private equity—even if PE offers a higher headline number.
- Private equity rarely matches the tax benefits available through ESOP structures.
- Tax strategy = one of the biggest levers in a business sale.
- ESOPs create a unique tax-advantaged exit for owners.
- The buyer you choose directly influences your long-term wealth.

Every business owner should compare ESOP vs. PE with real numbers. If you're a business owner planning an exit in the next 1–5 years, this episode could save you millions.

Subscribe for more tax-smart business strategies!

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Connect with Mark:

LinkedIn: https://www.linkedin.com/in/mark-kossow-3948187/
Website: https://www.clarkhill.com/people/mark-r-kossow/

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Connect with Us:

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About Gerry Spitzer:

Gerry Spitzer is an expert in ESOPS and exit planning for business owners. As co-founder of Questar Capital Partners, he helps founders design tax-efficient exit strategies that preserve legacy, reward employees, and maximize value. With 30+ years in wealth management, Gerry works with companies generating $20M–$300M in revenue, guiding them through complex succession and liquidity events.

📞 Connect with Gerry
✉ gerry@ questarcap.com
📱 850-655-6500
🌐 https://www.questarcap.com/
🔗 LinkedIn: https://www.linkedin.com/in/gerry-spitzer-cpwa%C2%AE-cepa%C2%AE-2472895/