ESOP exit strategy: How to exit your business while maintaining its continuity

People exit their business for various reasons: fresh opportunities, a financial windfall, personal ambitions, or just as a means to get away from it all. But what happens to the business afterwards? ESOP (Employee Stock Ownership Plan) can be a way out of this dilemma. We discuss the various aspects of ESOP and if it is the right exit strategy for you. Read the article to know more.

Whether it is a legacy business or a start-up, the decision of moving away from it is usually a bittersweet one. When the time comes for a change in ownership, there could be various reasons. Be it personal or financial, your exit strategy needs to be carefully thought out. Many owners prefer to have a succession plan that involves keeping the business in-house or identifying a successor from within the system. This may not always be feasible though.  The thought of handing over your ‘baby’ (and, by association, your employees) is likely to give you sleepless nights. So, is there a way out of this situation? Yes. Why not consider the ESOP option? What is ESOP? ESOP stands for Employee Stock Ownership Plan. The root of this concept can be traced back to the mid-19th century, w...


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