Best Idea Show - Doug Pugliese, Alpha Architect - Why Not Elect A 1042 Sale And Control When You Pay Those Taxes? | #288

The Meb Faber Show - Better Investing

The Idea Farm

Business, Investing, Management

4.7 • 938 Ratings

🗓️ 17 February 2021

⏱️ 56 minutes

🔗️ Recording | iTunes | RSS

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Summary

In episode 288, we welcome our guest, Doug Pugliese, the Head of 1042 QRP Solutions at Alpha Architect, where he manages the firm’s qualified replacement property investment strategies practice. In today’s episode, we’re covering Doug’s best idea: employee stock ownership plans. ESOP’s are a niche but incredibly attractive way for a business owner to sell their business for both themselves and the long-term viability of the company. The episode starts with a broad overview and then dives into the inner workings of an ESOP sale. Doug explains how the tax benefits of a 1042 election allow the owner to defer capital gains tax and even invest the proceeds into a portfolio of blue chip stocks. As the conversation winds down, Doug shares why ESOP’s may be an ideal way for middle market private equity companies to exit investments. Please enjoy this special “Best Ideas” episode with Alpha Architect’s Doug Pugliese. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Welcome to the Mebb favor show, where the focus is on helping you grow and preserve your wealth.
0:11.0	Join us as we discuss the craft of investing and
0:13.5	uncover new and profitable ideas all to help you grow wealthier and wiser.
0:17.2	Better investing starts here.
0:18.8	Matt Faber is the co-founder and chief investment officer at Cambria Investment Management.
0:23.3	Did it industry regulations, he will not discuss any of Cambria's funds on this podcast.
0:27.2	All opinions expressed by podcast participants are solely their own opinions and do not reflect the opinion of
0:31.2	Cambria Investment Management or its affiliates.
0:33.4	For more information, visit Cambria Investments.com.
0:35.6	What's up, friends?
0:40.4	Today we have another installment of our best ideas series our guest is the
0:44.4	head of 1042 QRP solutions at Alpha Architect that's a mouthful where he
0:49.2	manages the firm's qualified replacement property investment strategies practice.
0:54.0	In today's episode, we're covering our guest's best idea.
0:57.0	Employee stock ownership plans, otherwise known as ESOPs.
1:01.0	They're a niche but incredibly attractive way for a business owner to sell their
1:04.6	business for both themselves and the long-term viability of the company.
1:08.4	We start the episode with the basics and then dive into the inner workings of an
1:12.3	ESOP sale. Our guest explains how the tax
1:14.9	benefits of a 1042 election allow the owner to defer capital gains tax and even invest
1:20.3	the proceeds into a portfolio of blue chip stocks. We hear how different companies have
1:25.0	utilized this, including one of my favorite breweries. As we wind down, our guest explains why
	...

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