ACQUIRING AN ESOP OWNED COMPANY
Has anyone encountered a target that is ESOP owned, or can anyone comment on what acquiring an ESOP owned company would look like? I met a founder/owner who is retiring, and is gradually moving his ownership to employees in an ESOP model. I'm interested in the company, but unsure how the ESOP structure may hinder my efforts to acquire. Advice appreciated!
In turn, this means that a greater percentage of the company will likely be owned by people that will vote in conjunction with the views of the target company’s management rather than with the interests of a potential acquirer you the buyer.
Hope this helps what to look out for.