Amid increased M&A activity in 2024, a growing number of middle-market dealmakers and corporate founders are considering their options for a successful exit. One strategy that has attracted attention this year, largely due to its social and economic benefits, is the employee stock ownership plan (ESOP).

Earlier this year, furniture retailer Room & Board announced that it is selecting the employee ownership model, giving its 1,100 full- and part-time employees a stake in the business. Outside of the U.S., employee ownership models have also been highlighted prominently.