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

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One reason that business owners put off succession planning or even contemplating the thought of selling their business is because they are not ready to retire.  They legitimately worry about the loss of control of handing over the company to a third party.  Selling to an ESOP enables a business owner to sell all or a portion of the company, Providing a Business Owner with Liquidity and Diversification, while at the same time retaining control of the day-to-day operations of the company.  

This is because an ESOP company, like any other corporation, is governed by the Board of Directors.  In cases where the business owner would like to maintain control, they would continue to serve in their capacity as company President and chairman of the Board.  This approach also allows the business owner to faciliate the business transition process and transfer control in a gradual, orderly transition.  

Retaining control of the company is one of many reasons why Selling to an ESOP should be seriously considered as you plan your business exit strategy.

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