In my previous post I outlined the basic structure of an ESOP and how it is used as an exit strategy. If you want to read Part 1 in this ESOP Exit Strategy series, click here. Now, let’s talk about how you can finance an ESOP transaction.
Show Me The Money
Most businesses are not sitting on enough cash to fund the owners exit strategy. Usually, a business keeps enough cash for operations and the excess is paid to the owners in the form of wages or dividends. When it comes times to exit, the resources are not immediately available to buy back the shares from the owner. « Continue »