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#326: How ESOPs Work: The Life Cycle, ESOP Acquisitions, and Owner Success Stories with Jim Steiker and Ken Baker
Ep.#12 [THEME FIVE]
As we wrap up our four-part mini-series on ESOPs, we’re getting out of the weeds and coming back up for air.
Today we’re going to be talking about ESOPs acquiring other companies and ESOPs selling to a third party (yes, both are possible!). In the second part of this episode, we finish with an owner's success story about why he turned his company into an ESOP and the amazing things that have happened since.
In part one of this interview, Jim Steiker from SES ESOP shares his story about how hitchhiking led to a multi-decade career promoting ESOPs. He then dives into the full life cycle of an ESOP. He starts the segment with an awesome twist (a strategy that a seller can follow who DOESN’T want to take the time to convert to an ESOP but would like most of the legacy benefits): how a company can sell TO an already-formed ESOP. Jim explains the three reasons why most business owners don’t want to convert to an ESOP and how these reasons can be overcome by selling to one that is already formed. Jim then goes into detail on a few different strategies about how ESOPs can acquire companies and why. Jim finishes the segment by explaining how ESOPs can be sold to third-party buyers, how it works, and what it means to the employees.
In part two of this interview, Ken Baker, CEO of New Age Industries, shares his owner's success story on how and why he turned his company into an ESOP. He explains–via his own experiences–how to maximize the benefits of the ESOP by ingraining it into your culture through education, strategy, and execution. To date, New Age Industries has created 54 millionaire employees. Ken explains why he believes an ESOP is one of the purest forms of capitalism and business models he has come across.
Thank you for coming on this ESOP journey with us. We hope this series demystified ESOPs for you and got you up to speed on what they are, how they work, and why an ESOP might be the best fit for your company.
// WATCH THE INTERVIEW ON YOUTUBE: Intentional Growth™ Podcast
What You Will Learn
Part 1:
How Jim hitchhiked and became passionate about ESOPs.
The differences between selling to an already-formed ESOP and the normal M&A process of selling to a third party.
The three main reasons people don’t sell to an ESOP.
How–and why–selling to an already-formed ESOP can overcome many of the typical reasons sellers don’t pursue an ESOP.
The full life cycle of an ESOP company.
Why an ESOP company is a good exit alternative for a company who is not big enough to become an ESOP themselves.
How–and why–ESOPs acquire other companies.
View all episodes
By Arkona - Intentional GrowthEp.#12 [THEME FIVE]
As we wrap up our four-part mini-series on ESOPs, we’re getting out of the weeds and coming back up for air.
Today we’re going to be talking about ESOPs acquiring other companies and ESOPs selling to a third party (yes, both are possible!). In the second part of this episode, we finish with an owner's success story about why he turned his company into an ESOP and the amazing things that have happened since.
In part one of this interview, Jim Steiker from SES ESOP shares his story about how hitchhiking led to a multi-decade career promoting ESOPs. He then dives into the full life cycle of an ESOP. He starts the segment with an awesome twist (a strategy that a seller can follow who DOESN’T want to take the time to convert to an ESOP but would like most of the legacy benefits): how a company can sell TO an already-formed ESOP. Jim explains the three reasons why most business owners don’t want to convert to an ESOP and how these reasons can be overcome by selling to one that is already formed. Jim then goes into detail on a few different strategies about how ESOPs can acquire companies and why. Jim finishes the segment by explaining how ESOPs can be sold to third-party buyers, how it works, and what it means to the employees.
In part two of this interview, Ken Baker, CEO of New Age Industries, shares his owner's success story on how and why he turned his company into an ESOP. He explains–via his own experiences–how to maximize the benefits of the ESOP by ingraining it into your culture through education, strategy, and execution. To date, New Age Industries has created 54 millionaire employees. Ken explains why he believes an ESOP is one of the purest forms of capitalism and business models he has come across.
Thank you for coming on this ESOP journey with us. We hope this series demystified ESOPs for you and got you up to speed on what they are, how they work, and why an ESOP might be the best fit for your company.
// WATCH THE INTERVIEW ON YOUTUBE: Intentional Growth™ Podcast
What You Will Learn
Part 1:
How Jim hitchhiked and became passionate about ESOPs.
The differences between selling to an already-formed ESOP and the normal M&A process of selling to a third party.
The three main reasons people don’t sell to an ESOP.
How–and why–selling to an already-formed ESOP can overcome many of the typical reasons sellers don’t pursue an ESOP.
The full life cycle of an ESOP company.
Why an ESOP company is a good exit alternative for a company who is not big enough to become an ESOP themselves.
How–and why–ESOPs acquire other companies.