An Employee Stock Ownership Plan, 或“用,” is a qualified retirement plan, 类似于401(k), which allows the employees of a company to become owners of the stock of their employer, while at the same time providing an attractive business succession plan for selling 股东. 有超过6个,000 ESOPs in the United 状态s, and the number of participants in ESOPs has grown in recent years (source: National Center for Employee Ownership, “NCEO”). The NCEO’s most current data, coupled with the level of activity we are seeing in the market, confirms that ESOPs have become more popular than ever. Why are they so popular? 继续往下读，找出答案吧.
ESOPs: The Big Picture…
Negotiated transaction leads to the sale of company stock (100% is most common) to employees via the ESOP
Sellers receive “fair market value” for the stock, and any proceeds not received at closing earn a fair interest rate
Operational control and management of the company does not need to change
Company legacy is preserved – employees and management are protected and jobs are retained
The ESOP ownership structure can create a 100% income tax-free entity
Studies show ESOP companies outperform other ownership models over time, through an improved ability to attract, 奖励, 留住员工
Not every company is well-suited for ESOP ownership. Companies with the following
characteristics typically make for the best ESOP candidates:
Enterprise Value of at least $1 million – T在这里 are transaction and ongoing administrative costs associated with ESOP ownership, and the smallest companies may not be able to afford them.
盈利 ——同样, companies that are struggling to achieve profitability may not be able to afford the ESOP, and possibly as importantly, may not command a value that is attractive to selling 股东.
Available borrowing capacity – Most company’s take on leverage to enable the ESOP to purchase the company’s shares from selling 股东.
强大的领导团队 – The ESOP ownership model is designed to last into perpetuity, so the business must have a succession plan in place as key managers retire.
Stable and motivated employee base – ESOPs work best when employees recognize they benefit financially through the success of the company, and remain employed long enough to accumulate shares.
Domestically-based employees – Foreign-domiciled employees may not be able to participate in the ESOP, although plans can be designed to give them comparable benefits.
Did you know that an ESOP sale could net more proceeds than a traditional third-party sale? Click 在这里 to learn how.
Shareholder Considerations
If a company fits the criteria outlined above, and the 股东 are interested in transitioning ownership, an ESOP can be a true “triple-win” for the company, 股东, 和员工. ESOPs can be an attractive option for selling 股东 when they:
are ready to achieve liquidity for their ownership and diversify their wealth;
are capable of realizing certain tax benefits not available through a third-party sale;
wish to preserve the company’s legacy as an independent company;
wish to 奖励 their employees who helped build the company; and/or
desire to sell the company in a manner that typically provides greater certainty of closure, with less time and cost.
想了解更多?
You probably have more questions, and that is OK. We’ve answered many of the most common questions 在这里. Feel free to check out our other educational materials below, or contact one of our 用专家 聊聊天.
