Expanding the Three-Circle Model to Include Employees When Evaluating Ownership Succession Alternatives
When family business owners are evaluating non-family ownership succession options, often their advisers may suggest two primary options; selling the business to a “strategic buyer” or a “financial buyer.” However, this week’s edition presents an alternative option – selling the business to the employees, a “friendly buyer,” through an ESOP. Thank you to this week’s contributor, Dan Bayston, for sharing his analysis of ESOPs and the role they can play in a non-family ownership succession plan.
Using an ESOP for Shareholder Liquidity: The Lawrence Welk Experience
ESOPS are frequently used by family companies to provide shareholder liquidity. This week’s article is a case study from Martin Staubus of The Beyster Institute at the Rady School of Management at the University of California San Diego.