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Considering an ESOP?
An Employee Stock Ownership Plan, or “ESOP,” is a qualified retirement plan, similar to a 401(k), which allows the employees of a company to become owners of the stock of their employer, while at the same time providing an attractive business succession plan for selling shareholders. There are over 6,000 ESOPs in the United States, and the number of participants in ESOPs has grown in recent years (source: National Center for Employee Ownership, “NCEO”). The NCEO’s most current data, coupled with the level of activity we are seeing in the market, confirms that ESOPs have become more popular than ever. Why are they so popular? Read on to find out. |
ESOPs: The Big Picture…
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Have a question on ESOPs? Click here for answers to 30 of the most common ESOP questions. |
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Ideal Characteristics for an ESOP CompanyNot every company is well-suited for ESOP ownership. Companies with the following
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Did you know that an ESOP sale could net more proceeds than a traditional third-party sale? Click here to learn how. |
Shareholder ConsiderationsIf a company fits the criteria outlined above, and the shareholders are interested in transitioning ownership, an ESOP can be a true “triple-win” for the company, shareholders, and employees. ESOPs can be an attractive option for selling shareholders when they:
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Want to learn more?You probably have more questions, and that is OK. We’ve answered many of the most common questions here. Feel free to check out our other educational materials below, or contact one of our ESOP experts for a chat. |