Employee Share Plans
The most important asset of any business is its people. The management and motivation of staff is one of the biggest challenges a manager or employer will face in the course of business. To be able to attract, motivate and retain top personnel is the single advantage which will provide a single competitive advantage against your competitors. If you're going to sell the business to your employees, which in my experience almost always comes up as a high priority for a lot of business owners that are thinking that they are going to exit within the next five or so years, they really want to take care of their employees. In an ESOP structure, at least, which is obviously the most tax advantaged way to exit a business by far, then the company typically uses borrowed funds to do it. Employee equity can be provided under a number of methods and structures. These may involve such things as option contracts or unit trust structures, which are appropriate for the circumstances of the particular employer organisation and its employees.