Statistics show the life of most ESOP companies is less than 10 years. Given this reality, ESOP companies receive unsolicited purchase offers. It is prudent for all ESOP companies to consider the issues that typically arise when the board and management of an ESOP company decide the sale of the company to a third party should be considered. These offers present serious fiduciary challenges between their duties to the company itself versus the ESOP and its participants. In addition, ESOP companies have opportunities to acquire other businesses, and the board and management of those companies need to develop a strategy to finance and manage those acquisitions and to integrate those acquisitions into their organization.

Learning Objectives:

• Identify issues & considerations for ESOP leadership to plan for eventual shopping a sale of an ESOP company.
• Understand the fiduciary considerations the board and management should be reviewing & discussing when receiving an unsolicited purchase offer.
• Formulate a board & management strategy to implement an acquisition program for an ESOP company.

Note: This presentation is part of the Employee Owned 2022 conference. There is a cost to attend.