An Employee Stock Ownership Plan, commonly called an ESOP, has numerous advantages for employees and employers alike. Denman & Company can help you set up an ESOP that takes some of the mystery out of your succession planning.
Basically, an ESOP enables you to sell shares of your company without losing control of management. The ESOP buys the shares on behalf of your employees, who can then cash out when they retire or become vested.
The Denman team will help you in all facets of creating an ESOP, from initial planning to ongoing administration. Preliminary steps include a complete valuation of the company, a feasibility study, and the initial design of the plan. We can then handle all recordkeeping duties and keep employees informed of how much their shares are worth.
ESOP advantages for employers include:
- Prevention of hostile takeovers
- Easier plan of succession
- No loss of management control
- Ability to stay current with yearly valuations
- Potential for improved productivity through employee ownership
- Ability to borrow against the plan
The laws governing ESOPs are somewhat complicated, so when you’re ready to get started, call the Denman team.
