Time to Sell Your Business? An ESOP May Be the Answer
APRIL 26, 2019
Selling one’s company to an ESOP, an employee stock ownership plan, does just that. Selling to an ESOP preserves company culture and increases productivity, which generally ensures strong future performance. How does an ESOP work? In an ESOP transaction, owners essentially sell stock, whether some or all, to employees. Often these transactions are underwritten by banks, which prefer to lend to ESOPs due to the record-low default rates.