What you need to know about an ESOP

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&H’s 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. Schatz’s firm helps companies set up ESOPs—and advises distressed companies seeking to unwind their ESOPs. Schatz says several factors determine whether an ESOP will help a business family achieve its goals:

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About the Author(s)

Barbara Spector

Barbara Spector is Family Business Magazine's editor-at-large.


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