Robert Spielman, Tax & Business Services Partner, Quoted in the LIBN.com Article "Businesses Embracing Employee Ownership"
Long Island Business News
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.