Engage us in a conversation about your challenges & objectives!
Ownership Advisors > Smart strategies for employee-owned companies

Smart strategies for employee-owned companies


Many companies use ESOPs to either buy the stock of a retiring owner in a closely held company or create an employee benefit or incentive plan. Additional motivations may be to finance expansions, make acquisitions, spin off divisions or take a company private. Although ESOPs have grown in popularity, there is still a significant lack of understanding among business owners and professional advisors as to how they actually work.

When a private company converts to an ESOP, one important consideration is how the shares of departing employee owners will be repurchased, often called the repurchase liability. Many experts feel lack of planning and funding for this obligation is the Achilles Heel of ESOPs and one reason why the growth of employee ownership through ESOPs has remained flat over the past 10 years. Companies that rely on pay-as-you-go funding methods may find there will be "No pay when they go" for some employee owners. As a result of our commitment to employee ownership, we have developed a unique planning process designed to link your mission to your money. We start with an assessment questionnaire designed to clarify views on ownership and management succession and then measure the size and scope of your funding problem using leading actuarial methods and software. Finally, we advise you on specific funding strategies that fit your company and budget. If you implement your funding plan through our firm, you will enjoy "Raving Fan" service and our unconditional service guarantee.

In addition to providing strategic consulting services to existing ESOP companies, Ownership Advisors helps private business owners understand how employee ownership can be a viable succession plan.

Whether you've already formed an ESOP or just want to learn if an ESOP is right for you, we'd welcome the opportunity to talk. Click the below links to read more about our ESOP services, or click here to engage us in a conversation about your specific needs and desires.

ESOP Services