Practice Note: Questions and Answers Regarding ESOPs for Family Businesses

Abstract

Assessing the applicability of employee stock ownership plans for a family firm requires a basic understanding of their characteristics, followed by a careful analysis of the costs and benefits in the specific case. This note provides general information and offers guides for the critical, specific questions an adviser or owner should ask.

Family Business Succession: Suggestions for Future Research

“…Malone (1989) addressed leverage buyouts as a means of transition of ownership. Hoffmire and Gilbert (1992) discussed the applicability of employee stock ownership plans (ESOP) for family firms. Dreux (1990)…”