What is an ESOP, anyway… another alphabet soup of initials cobbled together to facilitate what, exactly?
ESOP’s – Employee Stock Ownership Plans – are an effective way for a founding entrepreneur to let the management team build their own equity by using this vehicle to purchase the business. Of course, nothing is really that easy…it takes a lot of strategic thinking and financial planning to actually make an ESOP happen.
And, it is definitely not a ‘risk free’ transaction for the founder. At CEOIQ, we’ve seen ESOP’s be amazingly successful…and abysmally disappointing. In this Fireside Chat with Ben, ESOP expert, Greg Hogan discusses the pros and cons of a complex way to exit.
