Since setting up its Employee Stock Ownership Plan (ESOP) in 1998, Harrisburg, Pa.-based D&H Distributing has seen annual sales grow from $430 million to $3.4 billion. D&Hâs third-generation co-presidents, brothers Michael and Dan Schwab, say their ESOP has motivated employees and helped them buy out their relatives. (D&H was the subject of the cover story in the July/August 2016 issue of Family Business Magazine.) Would an ESOP also be a good option for you?
That depends, according to Rob Schatz, a partner in ESOP Plus: Schatz Brown Glassman LLP. Schatzâs firm helps companies set up ESOPsâand advises distressed companies seeking to unwind their ESOPs. Schatz says several factors determine whether an ESOP will help a business family achieve its goals: