Employee stock ownership plans (ESOP) have been popular ownership transition mechanisms for small-to medium-sized private companies for many years for all manner of reasons.
An ESOP can be used to help a business owner sell all or part of their firm to cash out, it can facilitate management succession and/or it can allow employees to share the profits of their labor.
In addition, they’ve historically been a cost-effective way of achieving those goals, too, typically costing $200,000 to $1,000,000 depending, in part, on the size of the transaction and any underlying complexities.
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