June 29, 2012
Robert Spielman, Tax & Business Services Partner, Quoted in the LIBN.com Article "Businesses Embracing Employee Ownership"
By Claude Solnik
Company owners preparing for retirement are finding unlikely buyers for their businesses in a down economy – their employees.
Through sales to Employee Stock Ownership Plans – funds that own all or part of a company on behalf its employees who can only cash out their stakes when they leave – owners typically obtain fair market value, workers get a stake in the firm and all involved obtain substantial tax benefits.
The estate of Alvin Shankman, former owner of Bethpage-based Peerless Electronics who died last July, on May 31 completed a deal with an ESOP to acquire the firm through a loan to be paid out of future profits.