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Full Sale or Partial Sale
from AC 23 Concurrent Session 3
by NCEO
ESOP Transactions Are Flexible
Perhaps the greatest aspect of ESOP transactions are their flexibility.
There is no defined amount – 30%, 50% or 100% - you choose how much of the company to sell to an ESOP.
ESOPs allow ultimate flexibility as to how much of the company is sold and when. The business owner(s) can remain in control.
Partial Sale
Pros:
- Partial sale can leave you in control of the business if needed for strategic reasons.
- Excellent option for family businesses or those with shared ownership, where just one shareholder needs or wants to retire.
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No minimum percentage needs to be sold to an ESOP (a min. of 30% is required for a 1042 rollover). Can be increased over time.
