ABRC-ESOP
Monday, July 23, 2007
Preparing for retirement using an ESOP
Question: What should business owners be doing to prepare for retirement?
Evan L. Rhodes: Business owners in the 50+ age bracket face a rude awakening. These baby boomers will want to exit and retire at a time when it is increasingly more difficult to find buyers for their business. For the last six years, the average number of businesses offered for sale and the number actually sold has been fairly lopsided. In 2001, over 1.5 million businesses were offered for sale yet only 250,000 were successfully sold (1 out of every 6). If this trend continues, five businesses out of every six will have to fold. Business owners should start planning seriously. They might consider implementing an Employee Stock Ownership Plan or ESOP.
Evan L. Rhodes: Business owners in the 50+ age bracket face a rude awakening. These baby boomers will want to exit and retire at a time when it is increasingly more difficult to find buyers for their business. For the last six years, the average number of businesses offered for sale and the number actually sold has been fairly lopsided. In 2001, over 1.5 million businesses were offered for sale yet only 250,000 were successfully sold (1 out of every 6). If this trend continues, five businesses out of every six will have to fold. Business owners should start planning seriously. They might consider implementing an Employee Stock Ownership Plan or ESOP.
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