ESOPS: Why Don't More Businesses Sell to Employees?

Written By Mike Simpson

Why don't more businesses sell to employees? For founders of some businesses, it might be the best path to answering the WHY in selling all or part of their company to their most valued stakeholders, and there may even be tax advantages. Here's a quick overview of why it doesn't happen more often, and why founders might want to give it more consideration.

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6 Secrets to Selling Your Business

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The Funnel, Ep. 14: How Much Will You Pay In Taxes?
Selling Your Business, The Funnel
The Funnel, Ep. 14: How Much Will You Pay In Taxes?
Selling Your Business, The Funnel

The sale price doesn’t matter if taxes take a massive bite. Most founders don’t see this coming until it’s too late.

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Selling Your Business, The Funnel
The Funnel, Ep. 13: How Do You Compare Offers?
Selling Your Business, The Funnel
The Funnel, Ep. 13: How Do You Compare Offers?
Selling Your Business, The Funnel

Five offers. Same headline price. Very different outcomes. This is how smart founders separate real money from wishful thinking.

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Selling Your Business, The Funnel
The Funnel, Ep. 12: What's An 'Earn-Out' and Should You Agree?
Selling Your Business, The Funnel
The Funnel, Ep. 12: What's An 'Earn-Out' and Should You Agree?
Selling Your Business, The Funnel

Most founders accept earn-outs without realizing how rarely they actually pay out. Here’s why earn-outs look good on paper—and quietly kill real exit value.

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Selling Your Business, The Funnel
The Funnel, Ep. 11: What's an "LOI"?
Selling Your Business, The Funnel
The Funnel, Ep. 11: What's an "LOI"?
Selling Your Business, The Funnel

This episode breaks it down clearly, so you know exactly where an LOI fits into the sale of your business and how to think about it before you ever sign one.

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Selling Your Business, The Funnel
Guest Podcast by John Lee Dumas on EOFire
Selling Your Business
Guest Podcast by John Lee Dumas on EOFire
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Most founders spend decades learning how to build a business. Buyers spend their entire careers learning how to buy one. That gap is where regret, missed value, and bad deal terms show up.

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The Funnel, Ep. 10: What Percentage Do Transaction Advisors Charge?
Selling Your Business, The Funnel
The Funnel, Ep. 10: What Percentage Do Transaction Advisors Charge?
Selling Your Business, The Funnel

Advisor fees are more standardized than most founders expect. Kirk breaks down typical percentages, minimums, retainers, and how fees scale by deal size.

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Selling Your Business, The Funnel
Mike Simpson https://variant.media
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