An employee stock ownership plan (ESOP) is not just an employee benefit plan—it is also a useful succession planning tool for the owners of closely held businesses.
Succession planning requires the owner of a business to answer a series of important and difficult questions. Which exit method will maximize my return on investment? Once we exit, who will control the company? What will happen to the culture and the quality of the company’s products or services if I sell it to a third party? What will happen to the employees and their families?