Journey to an ESOP & Beyond EP16 - ESOPs and Private Equity - Discussion with Jason Miller
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Jun 5, 2024 Former National Director of ESOPs for Bank of America, Jason Miller, discusses the 'Expanding ESOP Initiative' on the podcast. Topics include comparing private equity and ESOPs as exit strategies, challenges in implementing ESOPs in the US, using ESOPs for capital-raising, and promoting employee ownership through ESOPs.
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Private Equity vs. ESOP: Key Differences
- Private equity firms prioritize fast transactions for companies aligning with their fund's targets and leverage potential.
- ESOPs are 100% debt-financed, often involving seller notes, requiring sellers to wait for returns.
Understand Exit Alternatives
- Understand the differences between exit alternatives like private equity and ESOPs to save time and money.
- Avoid pursuing paths that don't align with your goals and company legacy.
Expanding ESOP Initiative
- The Expanding ESOP Initiative explores increasing ESOPs by leveraging private equity's interest in employee ownership's financial impact.
- The initiative focuses on expanding ESOPs without disrupting existing structures, benefiting both companies and employees.