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Time to Sell Your Business? An ESOP May Be the Answer

Strategy Driven

It’s easy to start out as a solo practitioner and build a company as the skills from one’s career are directly transferrable, and overhead is quite low. Over seven years the company develops a solid client base, grows to 16 employees serving 40 clients, with revenues of $2 million annually. How does an ESOP work?

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Treat Employees Like Business Owners

Harvard Business Review

And companies — except for the very smallest — can implement an employee stock ownership plan (ESOP), often funded through borrowing. “That’s something they can take with them as they move forward with their careers.” A portion of those assets can be redirected to regular stock grants for employees.

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