Business owners who want to generate liquidity for their ownership interests often look at selling to an employee stock ownership plan (ESOP) as the most attractive mechanism.
A commonly distressing experience for owners in a company with an employee stock ownership plan (ESOP) is that the price of the business as a whole is not the price the ESOP will actually pay.
According to the latest data available from the Department of Labor, there were 6,669 ESOPs covering 14.4 million participants and holding close to $1.3 trillion in plan assets as of the end of 2015.
In these challenging times, it can be difficult and, at times, even scary for many managers or leaders to communicate economic realities to those they serve and supervise.
