Is an ESOP Right for your Agency?

October 19

In the latest installment of Creative Outcomes  - a video series on the world of agency M&A presented by the team at Upsourced - Ryan and Meredith interview a special guest about Employee Stock Ownership Plans (ESOPs). Jay Powers, managing director of BDO, breaks down the history and purpose of ESOPs, the characteristics of companies well suited to developing a plan, and some common objections to ESOPs in the marketing services industry. 

"If you want to continue a legacy, or if you just want to show loyalty to the folks that have helped build the business, you ought to look at ESOP as an alternative to a buyer."

According to Jay, ESOPs are a way for founders to sell their businesses at fair market value, just as if they sold to another buyer, but also preserve the culture and reward long-tenured employees.


According to Jay, there aren't any industries or verticals that are better suited than others, but generally the best candidates have relatively low turnover and predictable growth and cash flow.


Tune in below for the full episode, and reach out of pursuing an ESOP is right for your agency.


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