--- title: For owners | Old Harbor Advisors description: Succession options for owners of middle-market companies, including employee ownership, explained objectively and confidentially, at your pace. image: https://oldharboradvisors.com/hubfs/oha-site/brand/oha-heritage-share-1200x630.jpg --- [Skip to content](https://oldharboradvisors.com/the-practice/for-owners#main-content) [![Old Harbor Advisors anchor](https://oldharboradvisors.com/hs-fs/hubfs/oha-site/brand/oha-gold-plate-anchor-2026-10-22.webp?width=52&height=53&name=oha-gold-plate-anchor-2026-10-22.webp) OLD HARBOR ADVISORS, LLC](https://oldharboradvisors.com?hsLang=en) Menu - [Mission & Values](https://oldharboradvisors.com/mission-and-values?hsLang=en) - [Business Owners](https://oldharboradvisors.com/the-practice/for-owners?hsLang=en) Business Owners submenu - [Family Businesses](https://oldharboradvisors.com/the-practice/for-owners/family-businesses?hsLang=en) - [Contractors](https://oldharboradvisors.com/the-practice/for-owners/contractors?hsLang=en) - [Professional Services Firms](https://oldharboradvisors.com/the-practice/for-owners/professional-services-companies?hsLang=en) - [Business Advisors](https://oldharboradvisors.com/the-practice/for-advisors?hsLang=en) Business Advisors submenu - [Bankers](https://oldharboradvisors.com/the-practice/for-advisors/bankers?hsLang=en) - [Wealth Advisors](https://oldharboradvisors.com/the-practice/for-advisors/wealth-advisors?hsLang=en) - [CPAs & Attorneys](https://oldharboradvisors.com/the-practice/for-advisors/cpas-and-attorneys?hsLang=en) - [Team](https://oldharboradvisors.com/team?hsLang=en) - [Our Approach](https://oldharboradvisors.com/the-practice?hsLang=en) - [Resources](https://oldharboradvisors.com/resources?hsLang=en) Resources submenu - [ESOP 101](https://oldharboradvisors.com/resources/esop-basics?hsLang=en) - [FAQs](https://oldharboradvisors.com/resources/faqs?hsLang=en) - [Common Misconceptions](https://oldharboradvisors.com/resources/common-misconceptions?hsLang=en) - [Is an ESOP the Right Fit?](https://oldharboradvisors.com/resources/esop-fit?hsLang=en) - [Articles & Market Intelligence](https://oldharboradvisors.com/resources/market-intel?hsLang=en) - [Outside Organizations & Resources](https://oldharboradvisors.com/resources#organizations) [Talk to Us](https://oldharboradvisors.com/talk-to-us?hsLang=en) # For Business Owners Ownership needs to begin thinking about what happens next well before any decision is needed. Old Harbor Advisors helps owners understand the succession paths available to them, including employee ownership, and evaluate which, if any, align with their objectives, at a pace they set. The Right Succession Planning Depends on What Matters Most to You ## What Owners Usually Care About Most - Liquidity and after-tax proceeds - Control and legacy - Independence - Continued involvement - Employees and their welfare Our Focus ## Who We Work With [For Owners →](https://oldharboradvisors.com/the-practice/for-owners?hsLang=en) ### [![Three colleagues of different ages working together at a machine on a factory floor](https://oldharboradvisors.com/hs-fs/hubfs/oha-site/imagery/family-factory-team.jpg?width=720&name=family-factory-team.jpg) Family Businesses Closely held companies where succession could become an issue.](https://oldharboradvisors.com/the-practice/for-owners/family-businesses?hsLang=en) ### [![Black-and-white photo of a downtown construction site, with cranes, heavy equipment and workers in hard hats](https://oldharboradvisors.com/hs-fs/hubfs/oha-site/imagery/site-foundations-bw.jpg?width=720&name=site-foundations-bw.jpg) Contractors General contractors, subcontractors and specialty trades.](https://oldharboradvisors.com/the-practice/for-owners/contractors?hsLang=en) ### [![Two engineers in shirtsleeves reviewing a set of drawings in an open-plan office](https://oldharboradvisors.com/hs-fs/hubfs/oha-site/imagery/pro-engineers-reviewing-drawings.jpg?width=720&name=pro-engineers-reviewing-drawings.jpg) Professional Services Firms Engineering, consulting and other companies.](https://oldharboradvisors.com/the-practice/for-owners/professional-services-companies?hsLang=en) How Other Owners Decided ## What Owners Who Sold to Employees Reported In a March 2026 report, researchers at Rutgers’ Institute for the Study of Employee Ownership and Profit Sharing interviewed owners and leaders of 23 companies that sold to their employees, most through an ESOP. Many described the decision in two stages: a practical need started the search, and the comparison of paths came after. Retirement or succession was the most common starting point, for 15 of the 23; others needed to buy out a partner, keep key people or diversify their wealth. [*Business Owner Perspectives on Selling to Employees: Insights from In-Depth Interviews*](https://cleo.rutgers.edu/wp-content/uploads/2026/03/2026_Rutgers_Seller_Motivations_Report-3.pdf) What those sellers valued in the decision: - **Price.** Most said selling to employees was about as financially advantageous as their other options. - **Pace and role.** Some sold in stages, began with a minority stake or stayed on to lead the company, and executive leadership keeps decision-making authority, as in other private companies. - **Taxes.** Many said tax treatment belongs in the comparison, such as deferring capital gains under Section 1042 when selling stock to an ESOP that will own at least 30%. - **Beyond the price.** Many weighed jobs, the company’s name and independence, and recognition for long-time employees. The Cautions ## What the Same Report Cautions - **Who was asked.** The owners were found through firms and organizations that help with these transitions, and the authors note the sample is not statistically representative. Owners who looked at employee ownership and chose another path are not among them. - **A price ceiling.** An ESOP can pay no more than fair market value, and a few sellers accepted less than an outside buyer offered. - **Cash at closing.** Many sellers financed part of the sale themselves and are paid over time. Earlier research found this deterred some owners who considered an ESOP. - **Cost and upkeep.** A feasibility study, an appraisal and legal work come first, then annual compliance, and the company must plan to buy back shares from employees who leave. - **Independence is not assured.** The trustee must act in the employees’ financial interest and may not be able to turn down a strong outside offer. One seller’s company later merged after a difficult period, and its ESOP ended. - **Not every company qualifies.** Practitioners cite rough minimums such as about 25 full-time employees and about $1 million in steady annual earnings. Majority ESOP ownership can end some SBA set-aside certifications, and law practices and medical offices often face restrictions. - **Advice.** More than a third first heard of ESOPs from someone other than their most trusted advisors. Sellers advised starting early, finding experienced advisors and expecting employees to take time to understand ownership. These are points to weigh with your own advisors, alongside the other paths open to you. Other Paths Worth Weighing 1. 01 ### Sale to a Third Party A sale to a strategic buyer or a private equity firm can provide sometimes the most cash at closing and, with a strategic buyer, sometimes a premium. It usually means a change of control, and the company’s name, culture, people and relationships. These sales are subject to capital gains taxes. 2. 02 ### Transfer to Family Passing the company to the next generation can preserve its identity and keep it in the family. It requires a willing and capable successors, careful attention to fairness among heirs and, often, a longer, owner-financed path to liquidity. It does preclude, however, the tax benefits potentially available to sellers and successor companies under current tax law. 3. 03 ### Management Buyout A sale to the existing leadership team rewards the people who know the business best and supports continuity. Managers often have limited capital, so the owner may need to finance much of the price and be paid over time. Buyer liquidity and future tax structure may be suboptimal. Next Steps ## Questions About Whether an ESOP May Fit Your Company? [Learn About the Process](https://oldharboradvisors.com/the-practice#process) [Start With ESOP 101](https://oldharboradvisors.com/resources/esop-basics?hsLang=en) [Learn Whether an ESOP May Fit](https://oldharboradvisors.com/resources/esop-fit?hsLang=en) [Start a Confidential Conversation](https://oldharboradvisors.com/talk-to-us?hsLang=en) Educate • Explore • Prepare ![Old Harbor Advisors, LLC seal](https://oldharboradvisors.com/hs-fs/hubfs/oha-site/brand/oha-heritage-seal.webp?width=156&height=156&name=oha-heritage-seal.webp) Ownership • Stewardship • Legacy [Business Owners](https://oldharboradvisors.com/the-practice/for-owners?hsLang=en) - [Family Businesses](https://oldharboradvisors.com/the-practice/for-owners/family-businesses?hsLang=en) - [Contractors](https://oldharboradvisors.com/the-practice/for-owners/contractors?hsLang=en) - [Professional Services Firms](https://oldharboradvisors.com/the-practice/for-owners/professional-services-companies?hsLang=en) [Advisors](https://oldharboradvisors.com/the-practice/for-advisors?hsLang=en) - [Bankers](https://oldharboradvisors.com/the-practice/for-advisors/bankers?hsLang=en) - [Wealth Advisors](https://oldharboradvisors.com/the-practice/for-advisors/wealth-advisors?hsLang=en) - [CPAs & Attorneys](https://oldharboradvisors.com/the-practice/for-advisors/cpas-and-attorneys?hsLang=en) Old Harbor - [Mission & Values](https://oldharboradvisors.com/mission-and-values?hsLang=en) - [Team](https://oldharboradvisors.com/team?hsLang=en) - [Our Approach](https://oldharboradvisors.com/the-practice?hsLang=en) - [Resources](https://oldharboradvisors.com/resources?hsLang=en) - [Talk to Us](https://oldharboradvisors.com/talk-to-us?hsLang=en) Office 176 Federal St, 6th Floor Boston, MA 02110 [info@oldharboradvisors.com](mailto:info@oldharboradvisors.com) [+1 617-237-0267](tel:+16172370267) © 2026 Old Harbor Advisors, LLC [PRIVACY](https://oldharboradvisors.com/privacy?hsLang=en) ```json { "@context" : "https://schema.org", "@id" : "https://oldharboradvisors.com/#org", "@type" : [ "Organization", "ProfessionalService" ], "address" : { "@type" : "PostalAddress", "addressCountry" : "US", "addressLocality" : "Boston", "addressRegion" : "MA", "postalCode" : "02110", "streetAddress" : "176 Federal St, 6th Floor" }, "contactPoint" : { "@type" : "ContactPoint", "availableLanguage" : "English", "contactType" : "inquiries", "email" : "info@oldharboradvisors.com", "telephone" : "+1-617-237-0267", "url" : "https://oldharboradvisors.com/talk-to-us" }, "description" : "Old Harbor Advisors helps middle market business owners and their advisors understand how Employee Stock Ownership Plans (ESOPs) can help preserve business independence, deliver significant tax advantages, provide liquidity for owners, strengthen employee engagement, and support long-term business continuity and legacy.", "email" : "info@oldharboradvisors.com", "founder" : { "@id" : "https://oldharboradvisors.com/team#jack" }, "image" : "https://247514930.fs1.hubspotusercontent-na2.net/hubfs/247514930/oha-site/brand/oha-heritage-share-1200x630.jpg", "knowsAbout" : [ "Employee stock ownership plans (ESOPs)", "Employee ownership", "Business succession planning", "Ownership transition", "Management buyouts", "Family Business Succession" ], "legalName" : "Old Harbor Advisors LLC", "logo" : "https://247514930.fs1.hubspotusercontent-na2.net/hubfs/247514930/oha-site/brand/oha-heritage-icon-512.png", "makesOffer" : [ { "@type" : "Offer", "itemOffered" : { "@type" : "Service", "description" : "We educate business owners and their advisors on the possibilities of employee ownership, including its potential benefits and costs, opportunities and pitfalls, and the risks and considerations involved in determining whether it aligns with their business, financial, and succession goals.", "name" : "Education" } }, { "@type" : "Offer", "itemOffered" : { "@type" : "Service", "description" : "We help business owners and their advisors explore the flexibility of employee ownership, consider the options available, and assess how different approaches may support their succession, tax, and legacy goals.", "name" : "Exploration" } }, { "@type" : "Offer", "itemOffered" : { "@type" : "Service", "description" : "We work with leading national ESOP advisory firms. 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