“Sometimes logic doesn’t make sense. And sometimes the illogical is the real deal.”
This thought occured to Forbes contributor, Steve Parrish after speaking with an ESOP expert. Parrish, with more than 30 years of experience as an attorney and financial planner, explains that not all features of ESOPs appear logical on the surface.
Among the (il)logics discussed are;
- “The tax code is your friend.”
- “You can borrow to fund your pension.”
- “The best way to keep your business is to sell it.”
- “1 percent plus 99 percent = 110 percent.”
According to Parrish, these factors are what make ESOPs a compelling finance, retirement and exit tool for business owners. To follow his (il)logic, check out his article “Spock would have hated ESOPs, but Spock never owned a company,” on Forbes.