Tackling ESOP Myths: Smart Business Dealmakers Interviews David Solomon
Misconceptions about Employee Stock Ownership Plans (ESOPs) — that they represent a loss of control for owners, are overly complicated, or create barriers to accessing credit — are, unfortunately, common. The truth about ESOPs is that they can be a great business succession option for owners, with benefits that go far beyond providing a reliable retirement plan for employees. In a recent interview on the Smart Business Dealmakers podcast, David Solomon busts the myths about ESOPs and explains what they have to offer owners and employees. Topics include:
- How ESOPs are different from typical retirement plans
- How ESOPs can be used to transition ownership of a privately held company
- At what stage in a company’s life cycle it makes sense to transition to an ESOP
- The unique tax benefits associated with ESOPs
- How ESOPs create employee buy-in and improve performance
- Financing ESOP transactions through national or relationship banks
- The benefits of ESOPs to company legacy, employees, and communities
Listen to the complete interview here.
Questions about whether the ESOP structure may be right for your business? Reach out to David Solomon or another member of LP’s Corporate group.