In this episode of What’s Next?, host Terry Cook is joined by Ted Lape of Lazear Capital Partners to discuss ESOPs, a tool commonly used to facilitate succession planning, allowing a company owner to sell their shares to support their goals and transition flexibly out of the business. Ted has an impressive 30-year history in the banking industry and has helped many clients with setting up an ESOP at their company. More information about ESOPs can be found in our whitepaper “How to Successfully Exit Your Business with an Employee Stock Ownership Plan (ESOP)” available on our website www.parcionpw.com or at www.lazearcapital.com/.

1:35 – Ted’s introduction to ESOPs

2:44 – What is an ESOP?

3:30 – How are ESOPs different from ESPPs (Employee Stock Purchase Plan) or other employee stock

ownership plans?

5:30 – Mechanics, steps, and benefits of ESOPs, timeframe

7:55 – How is an ESOP different from a direct sale?

13:20 – Advantages

14:20 – Disadvantages

14:58 – Example when ESOP is the right solution

18:40 – Financing options and involvement

24:40 – Why don’t more business owners choose to exit with an ESOP?

26:20 – Cost and professionals involved

30:50 – How an ESOP can help ensure a legacy for a business owner

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