Login

Book a Demo
Home / Value Drivers / Employee Ownership in the Eyes of Exit Planning

Employee Ownership in the Eyes of Exit Planning

Employee Ownership in the Eyes of Exit Planning mernzen Fri, 10/21/2022 – 08:00 October is Employee Ownership Month and according to the National Center of Employee Ownership (NCEO), this month is dedicated to the celebration of the “undeniable benefits that

Table of Contents

Employee Ownership in the Eyes of Exit Planning

Employee Ownership

mernzen
Fri, 10/21/2022 – 08:00

October is Employee Ownership Month and according to the National Center of Employee Ownership (NCEO), this month is dedicated to the celebration of the “undeniable benefits that employee ownership provides to employees, companies, local communities, and the nation.” 

As leaders in the Exit Planning space, we felt a responsibility to touch on this subject as employee ownership is a piece in the larger picture that is Exit Planning. Employee ownership has piqued the interest of many business owners, and it is worth exploring and gaining a clear understanding of how it serves as one exit path that an owner could choose. 

As is true with any exit path that is chosen, calling upon experts is crucial in implementing a successful business transfer. There are a variety of unique benefits and challenges that come with an employee ownership transition. Partnering with employee ownership experts can help you best identify candidates, determine the feasibility for your business owner clients, and monitor the changing market.     
 

The Employee Ownership Market

As the modern-day business landscape is ever-changing, many are unaware of what piece employee ownership has in the pie when it comes to types of business models in the U.S. 

As detailed by NCEO in an article based on 2019 data, there are over 14 million U.S.participants on ESOPs, with just over 10 million that are actively employed and covered by ESOPs. A majority of privately-held ESOPs are S corporations, represented largely by service and manufacturing organizations. 

Another statistic that shows market growth for employee ownership is that according to the NCEO, an average of 250 new ESOPs have been created each year since 2014. However, the total number of active ESOPs has been on a slight decline in recent years. 

Lastly, in a recent BEI webinar presentation, representatives from Project Equity reported on a dramatic shift in the business landscape and exit ath preferences due to generational changes of baby boomer business owners nearing retirement.    

Check out the statistics Project Equity shared, plus their take on employee ownership by watching the webinar recording! 

 

Get More Insights as a Member​

BEI members get unlimited access to our complete library of exclusive insights, advanced frameworks, and member-only content.

Explore Membership
Book a Demo

Related Insights

Exit Planning advisor discusses options with business owner client.

Maximize Business Value with Owner Based Planning

In today’s dynamic business environment, strategic planning is more critical than ever. Owner Based Planning provides a robust framework that guides clients toward sustainable success. This approach focuses not only...

Business advisors help owners balance emotion and rationality.

Exit Planning Is a Whole-Person Journey

How to recognize and respond to the emotional roadblocks owners face when planning their exits. Most advisors know this moment well: a business owner says they want to exit on...

Frequently Asked Questions

Get answers to common questions about BEI’s programs and methodology

Business exit planning is a proactive process that helps business owners grow business value and prepare for a future transition, whether that exit is soon or years away. It aligns business, financial, and personal goals to build a stronger, more transferable company. Any owner who wants to increase value, reduce risk, or eventually transition their business can benefit from exit planning, from those preparing for a sale to those focused on long-term growth and continuity.

No. Certification is not required to use BEI’s tools or deliver business and exit planning services. Many advisors, however, choose to pursue the CExP™ credential to strengthen their credibility and deepen their expertise.

No. BEI serves advisors, attorneys, CPAs, insurance providers, consultants, and financial professionals who work with business-owner clients. It is for professionals who want a clear, credible way to guide owners through business transitions and value growth.

The CExP™ certification is designed for advisors who want a deeper, more hands-on approach to business and exit planning. While CEPA provides a strong educational foundation, the CExP™ focuses on practical application using BEI’s proven planning processes, tools, and advisor support. CExP™ credential holders learn not only the concepts of exit planning, but how to implement a repeatable planning process with real clients.

Access enterprise-grade planning software, proven templates, and ongoing support—everything you need to deliver exceptional business planning efficiently.

The full certification pathway can be completed in as little as three months, depending on your pace. Each stage—Boot Camp, advanced exit planning (AExP), and CExP™— has generous completion windows, with most advisors having up to a year to finish the program.

Full access to BEI’s tools comes with membership, but we do offer training programs that don’t require joining. The best way to explore your options is a conversation with our team—we’ll help you determine the right starting point.