Is an Employee Stock Ownership Plan Right for Your Business?

Liquidity and Exit Planning for Business Owners

For decades, owners of privately held companies have used Employee Stock Ownership Plans (ESOPs) to sell their business and unlock meaningful liquidity while preserving their legacy. Current federal and state tax laws create an environment where an ESOP might be an attractive path to align the objectives of selling shareholders, the management team, the employees and the company.

Among other benefits of employee ownership, the seller receives fair market value and favorable tax treatment on sale, the company receives tax-advantaged financing and enhanced cash flow, and the employees receive valuable retirement benefits and continued employment in a rewarding and motivational arrangement.

Common Characteristics for
Structuring a Successful ESOP Company