Is an ESOP a good fit for your construction company?
Abstract: One approach to succession planning that has received quite a bit of attention for some time is the employee stock ownership plan (ESOP). But do these arrangements fit the distinctive aspects and challenges of a construction business? This article explains how ESOPs work and their considerable tax advantages. But there are also disadvantages — and, as a sidebar explains, ESOPs can affect bonding capacity in both positive and negative ways.