Selling to an ESOP Creates an Internal Market and Built-In Buyer

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Are you beginning to consider your business transition alternatives?  Whether you are looking for an exit strategy in the near future or are satisfying your succession planning responsibilities, all business owners will eventually need to find a buyer for your business.  The lack of a qualified buyer creates a problem for many business owners, especially in our current economic environment.  This can especially be a problem for small business and businesses located in rural areas.  An ESOP creates an internal market and “built-in buyer” that is able and ready to purchase some or all of the stock of the company from the business owner at fair market value.  While each situation is different, an ESOP transaction could take place as soon as 60-90 days after starting the process.

Our series on Selling to an ESOP explores many of the benefits of selling to an ESOP:

• Selling to an ESOP in 2012 Increases After-Tax Proceeds by 43%

• Selling to an ESOP Pays for Itself

• Selling to an ESOP Provides a 15%+ Expected Rate of Return

• Selling to an ESOP Provides Full Payment at Fair Market Value

• Selling to an ESOP Provides Additional Value for the Seller

• Selling to an ESOP Increases Cash Flow by Eliminating Income Taxes

• Selling to an ESOP Enables a Business Owner to Defer/Avoid Taxation

• Selling to an ESOP Enables a Business Owner to Sell In 60-90 Days

• Selling to an ESOP Creates an Internal Market and Built-In Buyer

• Selling to an ESOP Enables a Business Owner to Sell While Retaining Control of the Company

• Selling to an ESOP Provides a Business Owner with Liquidity and Diversification

• Selling to an ESOP Provides Greater Employment Stability and Increases Job Satisfaction

• Selling to an ESOP Saves Local Jobs and Strengthens the Local Community

• Selling to an ESOP Rewards Loyal Employees & Preserves Company Legacy