ESOP (Employee Stock Ownership Plan)

Transition ownership to employees while supporting continuity, loyalty, and company culture.

What It Is

Transitioning ownership to employees over time through a structured plan that rewards loyalty and secures company culture.

Company has at least $2M EBITDA (ESOPs can be costly to set up).

Stable workforce and strong management team already in place.

Owner values legacy and culture as much as financial outcome.

ESOP setup costs can run $100k–$300k+.

Requires ongoing compliance and trustee management.

Works best in companies with low turnover and employee commitment.