March 2019 The Basics of ESOPs Transactions Keith Butcher| Whitepapers| ESOP At its core, an Employee Stock Ownership Plan (ESOP) is a qualified retirement plan. However, the practical use of this strategy is to provide an ownership transition and retirement plan for owners of privately owned businesses. An owner can sell part or all of his/her shares to the ESOP at fair market value. ESOPs stand out from other benefit plans because they allow the company to borrow money from an outside source, such as a bank, to purchase the company shares from the owners. As such, they are a unique combination of a benefit plan and a tool of corporate finance. Learn more about the ins and out of ESOPs in this whitepaper. DOWNLOAD WHITEPAPER Whitepapers Comments are closed. Search Categories Business Sale Business Valuation ESOP Industry Specific News Recapitalization Strategic Advice Recent Posts Buyside Advisory Services and Acquisition Capital Debt Financing in Different Flavors How ESOPs can help Preserve a Founder / CEO’s Legacy How to Select the Optimal ESOP Valuation Advisor How Will Selling Your Company to an ESOP Affect Your Role as Founder/CEO?