Selling your business to an Employee Stock Ownership Plan (ESOP) is an attractive alternative transition strategy that offers many benefits over a traditional M&A transaction.
When structured properly, ESOP’s can create tremendous value for you and your employees, including substantial personal liquidity at closing, reduced tax liability and elimination of personal liability, financial incentives for your employees that ensure business continuity and lead to increased productivity and employee retention, long-term preservation of your brand and formalization of your professional legacy.
ESOPs also allow you to keep certain information confidential that otherwise would be disclosed when marketing the company for sale.