Why Corporate Founders Should Consider an ESOP as an Alternative Exit Strategy
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).
August 12, 2024 at 12:14 PM
5 minute read
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.
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllGOP Now Holds FTC Gavel, but Dems Signal They'll Be a Rowdy Minority
6 minute readBig Tech Is Cozying Up to President Trump. Here's Why Their Lawyers Are Cautiously Optimistic
Starbucks Hands New CLO Hefty Raise, Says He Fosters 'Environment of Courage and Joy'
Internal Whistleblowing Surged Globally in 2024, So Why Were US Numbers Flat?
6 minute readLaw Firms Mentioned
Trending Stories
- 1SEC Sued for Failing to Reveal Records Involving Simpson Thacher Attorney
- 2Lawsuit accuses University of California of racial discrimination in admissions
- 3Data Breaches in UK Legal Sector Surge, According to ICO Data
- 4PayPal Faces New Round of Claims; This Time Alleging Its 'Honey' Browser Extension Cheated Consumers
- 5Fired NLRB Member Seeks Reinstatement, Challenges President's Removal Power
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250