The National Center or Employee Ownership (NCEO) published an article on their Web site on the topic of “Ownership Transitions: ESOPs Compared To Other Strategies,” authored by Kelly Finnell, Executive Financial Services.
“There are three traditional ownership succession strategies: sell to an insider, sell to an outsider, and “till death do us part.” In this article I discuss each of these traditional options and compare each of them to an ESOP.”
This is an excellent introduction to using an ESOP as an alternative to traditional ownership succession strategies. The Employee Stock Ownership Plan (ESOP) was the first tool designed by binary economist Louis O. Kelso and used to broaden ownership of productive capital among the employees of a corporation.
