ESOP Boot Camp Part 3: Why Owners Choose ESOPs — and Why They Don’t | ESOP Radio

Описание: Why do some business owners choose an ESOP—and why do others decide it’s not the right solution?

In Part 3 of the ESOP Boot Camp series, Trevor Gilmore, CEO of Menke, and Ben Spadt, ESOP Investment Banking Consultant at Menke, explore the real decision drivers behind employee ownership. This episode focuses on why owners pursue ESOPs, how those decisions compare to other exit options, and when an ESOP may not be the right answer.

The discussion is structured around three core frameworks owners consistently face: liquidity versus legacy, partial versus full exits, and clear situations where ESOPs do not make sense. Throughout the episode, Trevor and Ben draw on real-world advisory experience to explain how these decisions play out in practice.

Topics covered in this episode include:
-Liquidity versus legacy as competing (and complementary) motivations
-How ESOPs compare to strategic and financial buyers
-Partial ESOPs versus 100% ESOP transitions
-Timing considerations based on owner age and succession goals
-Bank financing versus seller financing
-Pre-fund ESOPs and when they can make sense
-Common reasons ESOPs fail or are terminated
-Clear signs an ESOP may not be the right solution

This episode is part of ESOP Boot Camp, a foundational educational series within ESOP Radio, the official ESOP podcast from Menke.

🔗 Explore more episodes and resources: https://www.menke.com/esop-radio/

Chapters:
00:00 – Welcome to ESOP Boot Camp Part 3
01:24 – Why owners choose ESOPs — and why they don’t
01:24 – Liquidity vs. legacy: defining the tradeoffs
03:13 – ESOPs vs. strategic and financial buyers
05:26 – Using ESOPs to control your destiny
08:45 – Partial vs. full ESOP exits
11:08 – Real-world example: partial ESOP transitions
14:02 – Financing decisions and seller notes
18:13 – Pre-fund ESOPs and timing considerations
25:07 – When an ESOP is the wrong answer
30:07 – When outside buyers make more sense
34:58 – Final takeaways and what’s next in ESOP Boot Camp