Section 11: ESOPs as an exit strategy Flashcards
1
Q
Most common application of an ESOP
A
to provide liquidity to private company owners
2
Q
Additional applications of an ESOP
A
- capital formation
- finance corporate acquisitions
- employee productivity and retention
- succession plan
- liquidity in divorce
3
Q
What goals can an ESOP help owners achieve?
A
- take some chips off the table
- maintain the legacy of a business
- unwind from daily operations
- trial run on exiting the business
- reward those who helped along the way
- engage the employees in the enterprise
