January 23, 2020
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. ESOPs stand out from other benefit plans because they allow the company to borrow money from an outside source, such as a bank, in order 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.
Mosaic Capital Partners has prepared a comprehensive primer to help you understand ESOPs and how they can benefit your business.