When an owner of a privately held company is planning to retire, there are many different ownership transition options to choose from. Examples include a management buyout, transfers to the next generation, a sale to a third-party buyer, an IPO, or even liquidation. One option that owners are typically less familiar with is an employee stock ownership plan (ESOP). Using an ESOP plan as an exit strategy can be an effective way to meet many transition goals and provide for the company’s long-term success.
Brian J. Sharkey, Director-in-Charge, Business Advisory and Katrina R. Samarin, Director, Tax Strategies, offered five key ways an ESOP plan can help accomplish these goals in this article for the Philadelphia Business Journal.