June 15, 2011
Jon Friedland and David Solomon, partners in LP's Corporate Practice Group, recently co-authored an article for the Dow Jones Daily Bankruptcy Review, discussing how private equity firms can utilize an employee stock ownership plan (ESOP) to exit from a portfolio company investment. ESOPs tend to work well for those portfolio companies in industries where there are few strategic buyers or for companies that have had temporary downturns in their business but which have strong management and good prospect for improved performance in future years.
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