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When a small to medium-sized business owner exits a company, the factors they need to ponder are varied and complex. Here’s an overview of those considerations.
The DOL has committed to finalizing regulations surrounding the adequate consideration exemption, a proposed regulation still being cited in ESOP transactions
An employee stock ownership plan (ESOP) is a tax-advantaged way to sell a business to the employees of a company. An ESOP allows the employees of a company to be the beneficial (not legal) owners of a company’s equity. 
An ESOP is a qualified retirement plan sponsored by a company, but unlike a 401K, an ESOP must invest primarily in the stock of the company sponsor and an ESOP may borrow money to finance the purchase of company stock.