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

Strategy Driven

These companies are often founded to capitalize on a perceived market opportunity and grow over time until eventually the owner has a healthy, and profitable company. Let’s assume you started a digital marketing agency, a realistic example, given this industry is hot. 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.

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Why the U.S. Needs More Worker-Owned Companies

Harvard Business

And some companies with employee majority-owned stock programs, such as Publix Super Markets and outerwear maker W.L. Some businesses with employee stock ownership plans (ESOPs) are converting into structures that more closely resemble worker co-ops. ” The company maintained the tax advantages of an ESOP, but distributed the shares in a way that would give employees with lower salaries greater voting power. Klaus Meinhardt/Getty Images.

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Huawei: A Case Study of When Profit Sharing Works

Harvard Business Review

It is the only Chinese company that receives more sales revenue from markets outside China (67%) than from inside it. isn’t one of those markets. At Huawei’s inception, Zhengfei designed the Employee Stock Ownership Plan (ESOP). The structure of the ESOP is based on two important premises. Huawei’s ESOP can satisfy both human needs. The gaps between what CEOs earn and what workers do are startlingly large around the world.

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