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Burlington Free Press – Employee Owned Companies Gain Traction

From the Burlington Free Press:

For Jason and Shaun, an ESOP was the perfect exit strategy. The brothers did not want to leave the fate of the employees who helped them build Alliance into a powerhouse in the hands of a buyer that might gut the place. They had originally thought of selling it to a few key employees.

Then we got so big, Shaun and I were talking, these guys can’t afford this thing,” Jason said. With an ESOP, the brothers, who are equal owners, will receive a “fair price” for their company over 10 years, from revenue that previously went to paying federal taxes. A portion of that money will also go toward the employee/owners’ retirement accounts, where the company can access it to invest in further growth. It will take five years for employees to be fully vested in the ESOP. The plan also includes some profit sharing for the employee/owners.

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