Are ESOPs Really More Complex Than Other Ways to Sell a Business?

When people describe the pros and cons of ESOPs, often they note that the plans are complex. ESOPs are somewhat more complex than 401(k) and similar retirement plans and do cost substantially more to install and somewhat more to operate, mostly because an annual appraisal is required for closely held companies. But ESOPs are not more complex than selling to a third party.

Corey Rosen, Executive Director of the National Center for Employee Ownership (NCEO), has created a chart to show the pros and cons of different types of transactions. Visit the NCEO website to view this chart and learn more.