flexiblefullpage - default
Currently Reading

Is an Employee Stock Ownership Plan Right for Your Construction Business?

billboard - default
Business Management

Is an Employee Stock Ownership Plan Right for Your Construction Business?

Employees who are invested in the company's success may one day make the best leaders. That's where employee stock ownership plans (ESOP) come in

September 29, 2022
Business leader figurine standing on money in front of gold bars and letters spelling 'ESOP'
Image: Stock.adobe.com

The majority of U.S. contractors employ 20 or fewer workers, but what happens when owners approach retirement? Who should take the reins of their businesses? According to Construction Dive, employee stock ownership plans (ESOP) work well for businesses earning more than $1.5 million and can make the succession process easy for all involved.

Not only are construction companies difficult to sell to a third party, but existing employees can also maintain relationships with the company’s clients. If started early, ESOP Trusts can offer huge incentives and guarantee that construction companies are kept in the right hands, generation after generation.

Construction companies are notoriously difficult to sell to a third party. More importantly, the IRS encourages this behavior and provides huge incentives to sell to your employees. More often than not, we find that owners who sell to their employees are able to walk away with more money than from selling to a third party. This phenomenon is tightly connected to those tax benefits.

There is considerable evidence that companies owned by employees are often more productive. They have skin in the game. They are less likely to leave. They have more incentive to be productive. Interests are tightly aligned!

Read more

Related Stories


Seeking Bipartisan Solutions for the Housing Affordability Crisis

NAHB Policy Briefing | Housing is a bipartisan concern, with housing affordability a top-tier political issue; residential construction sees continuing labor shortage

Education + Training

Washington Builders Introduce New Workforce Training Programs to Tackle Labor Shortage

Industry leaders in Washington are rolling out a number of new training programs and initiatives meant to connect young adults with career opportunities in the skilled trades

Women in Construction

The Share of Women in Construction Is at a Record High, but How Did It Get There?

A skilled labor shortage is creating a pathway for greater diversity and inclusion in the construction workforce, and women are leading the charge

boombox1 -
native1 - default
halfpage2 -

More in Category

native2 - default
halfpage1 -

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.

Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.