When the owner of a privately held company is planning to retire, there are many different options to transition their ownership in the business such as a management buyout, a sale to a third party, or even liquidation.
One option business owners are generally less familiar with is an employee stock ownership plan (ESOP). Using an ESOP as an exit strategy can be an effective way to meet many of your transition goals and provide for the long-term success of your business.
In this article for Philadelphia Business Journal, Steven P. Feimster, Director, Audit & Accounting, discusses the advantages of an ESOP as a business transition strategy and how to know if an ESOP is right for you and your business.