January 8, 2025
When they launch a business, most founders don’t have selling on the top of their mind. But when it comes time to consider the future – for themselves, the company, and employees – an ESOP (Employee Stock Ownership Plans) can be a win-win.
“A lot of founders would say, ‘I'm not ready to sell the company.’ But the beauty about the ESOP is that it can create a market for the sale of your shares … and you control the timing,” explains Bill Merten, a partner in Krieg DeVault’s ESOP Practice.
In breaking down that beauty with Krieg DeVault colleague and host George Lepeniotis, Bill outlines the flexibility and financial benefits of ESOPs versus traditional sale options like private equity or strategic buyers. He describes the unique advantages to employee beneficiaries as well as founders and details how an ESOP is structured and financed.
Disclaimer: The contents of this article should not be construed as legal advice or a legal opinion on any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult with counsel concerning your situation and specific legal questions you may have.
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January 8, 2025
When they launch a business, most founders don’t have selling on the top of their mind. But when it comes time to consider the future – for themselves, the company, and employees – an ESOP (Employee Stock Ownership Plans) can be a win-win.
“A lot of founders would say, ‘I'm not ready to sell the company.’ But the beauty about the ESOP is that it can create a market for the sale of your shares … and you control the timing,” explains Bill Merten, a partner in Krieg DeVault’s ESOP Practice.
In breaking down that beauty with Krieg DeVault colleague and host George Lepeniotis, Bill outlines the flexibility and financial benefits of ESOPs versus traditional sale options like private equity or strategic buyers. He describes the unique advantages to employee beneficiaries as well as founders and details how an ESOP is structured and financed.
Disclaimer: The contents of this article should not be construed as legal advice or a legal opinion on any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult with counsel concerning your situation and specific legal questions you may have.