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In 2018, Folience, a 100% ESOP-owned holding company based in Cedar Rapids, Iowa, bought Cimarron Trailers, a manufacturer of high-end custom horse and livestock trailers in Chickasha, Oklahoma.

“Ok, everybody, please take a breath. Yes, Clown Shoes has been acquired by Harpoon.

During the last 15 years, benefit corporations have seen explosive growth. Originally inspired by frustration about the lack of a legal tool to allow Ben & Jerry’s to resist being purchased by Unilever, benefit corporations are intended to facilitate socially responsible businesses.

The buyer may use cash in reserve to finance the deal. That is almost always the case in smaller deals. In other cases, the buyer may borrow money from a lender, usually a bank or non-bank debt in very large deals..

Many businesses take steps to align the interests of employees and the company, often by providing variable compensation linked to the value of the company. Others want to offer recruitment or retention bonuses to develop the workforces they need to grow. Corporations use equity compensation plans such as stock options, performance shares, or restricted stock, and LLCs have similar versions of these equity compensation plans.

Topic Performance Measure Study Period Performance Impact Source Measuring the Impact of Ownership Structure on Resiliency in Crisis

Robert Wrixon

Using an ESOP for Business Transition Can Be Complicated, But Selling to an Outside Buyer Is Often Uncertain and Even More Complicated with Less Flexibility and Fewer Tax Benefits