Section 11: ESOPs as an exit strategy Flashcards by Jason Trefanenko

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Most common application of an ESOP

to provide liquidity to private company owners

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Additional applications of an ESOP

capital formation
finance corporate acquisitions
employee productivity and retention
succession plan
liquidity in divorce

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What goals can an ESOP help owners achieve?

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

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Section 11: ESOPs as an exit strategy Flashcards

(3 cards)