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Unlocking Liquidity: Selling Your Business to an ESOP

Unlocking Liquidity: Selling Your Business to an ESOP by Blake Head an ESOP Advisor.

An employee stock ownership plan – better known as an ESOP - can be an attractive and tax efficient alternative for owners of private companies that are seeking liquidity but do not want to sell to a third-party buyer. An ESOP is a qualified retirement plan that provides the business’ current and future employees beneficial ownership in the company over time. In addition to providing retirement benefits for employees, selling a company to an ESOP can be used as an exit or liquidity vehicle for the selling owner as well as provide tax benefits for both the owner and the company.

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