What's the smartest exit strategy for construction business owners who don't want to sell to private equity?

In this episode, Mason Brady and John Bencosme cover the tax advantages of ESOPs for construction business owners, including how a 100% S-Corp ESOP can eliminate federal income tax, how to defer capital gains through installment structures, the difference between seller financing and bank financing, partial vs. full ESOPs, and why some construction owners choose ESOPs over private equity to protect their employees and preserve company culture.

Topics We Cover

00:00 — What is an ESOP and why is it gaining traction in construction

05:00 — The exit strategy problem: why construction businesses are hard to sell

08:30 — Tax advantages of ESOPs and how to defer capital gains

12:00 — S-Corp structure and entity design for maximum tax benefit

27:00 — Partial vs. full ESOPs and financing options

33:00 — Warrants, synthetic equity and how owners get paid back

Links & Resources

Brady CFO — Fractional CFO Services for Construction: https://bradycfo.com/

🤝 Connect with John Bencosme: https://www.linkedin.com/in/john-b-84a64b1b2/

🎤️ Connect with Mason Brady: https://www.linkedin.com/in/masonbrady/?skipRedirect=true

Built to Scale is the podcast for construction business owners who want to scale — not just grow. Every episode brings you real financial strategy and business advice built specifically for the construction industry. Follow, rate, review, and share.

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