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Cash out with ESOPs

I’m still reading that Fortune issue. I read an article about Eileen Fisher, a clothing designer with stores throughout the US and Canada. They opted not to sell the business or go public. Instead, they used an ESOP. An ESOP is an employee stock ownership plan. It enables employees to participate in the ownership of the company while allowing the owner(s) to cash out some or all of his/her/their equity. It also conveys some tax benefits somewhat tied to deferred compensation and installment payments. If your employees have voiced interest in owning the company or in equity participation, or if you already provide stock options, this could be a highly viable option to cash out of your business. You need to install a professional management team so the company doesn’t go to Hades when you leave. (Otherwise that could be considered a breach of fiduciary responsibilities. An ESOP is an administered program. )
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About Tiffany C. Wright

Hi! I,Tiffany C. Wright, am the author of the ebook, "Help! I Need Money for My Business Now!!" and the book "Solving the Capital Equation: Financing Solutions for Small Businesses", available on Amazon. I am the president of Toca Family Business Services, a short-term & project-based interim management & strategic and financial advisory firm, located in Atlanta, Georgia. In the past five years I've helped small and medium companies restructure and obtain over $31 Million in financing and a similar amount in purchase orders and contracts. I have an MBA in Finance and Entrepreneurial Management from the Wharton School of Business at the University of Pennsylvania and a B.S. in Industrial and Systems Engineering from The Ohio State University. Personal: I enjoy investing. I am a prodigious reader of everything from business books, magazines, and newspapers to horror and popular fiction. I read 4-6 books per month. I also love to travel. I've been to 33 countries on 5 continents and lived in Japan for 2.5 years and aim for a foreign locale twice a year. I am also an athlete and run track on the Master's Circuit. The highlight was placing 7th in my age group in the 2007 World Master's Track and Field Championships in Italy.

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The Resourceful CEO, Tiffany C. Wright

the president of Toca Family Business Services, a strategic and financial advisory firm which provides short-term & project-based C-level management. She is the author of Solving the Financial Equation: Financing Solutions for Small Businesses, available on Amazon.

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