At our October 2019 board meeting the younger board members expressed a desire to hear the story of why and how I chose to transition company ownership from me, a sole stockholder, to an “ESOP.” Here is my brief explanation. We started HPC in 1971 on a shoestring, with a used 40 ton molding press,…
The COVID-19 pandemic has dramatically shifted the economic landscape virtually overnight. The financial picture your business may have been looking at as of December 31, 2019 could be very different today. Many ESOP-owned companies are understandably focused on what this means for their annual valuation. But the next big threat to your business’s capital may…
April 20th, 2020 On a recent episode of the Daily Social Distancing Show with Trevor Noah, special guest Mark Cuban discussed how to revive the economy in the wake of a global pandemic. Cuban relayed some of the advice he’s shared with President Trump as part of his involvement on the coronavirus task force. “The…
With the COVID-19 pandemic casting a cloud of uncertainty and instability over the economy, leading to record numbers of unemployment claims, you may have heard people (including us) saying that ESOP companies are more resilient in the face of adversity. It’s true. Studies have repeatedly shown that ESOP companies: Had 50% fewer layoffs than traditionally…
We hope everyone at your company is ok during this uncertain time. This article highlights two immediate resources your company may qualify for under the CARES Act: the Economic Injury Disaster Loan (EIDL) and the Paycheck Protection Program (PPP). #1 Economic Injury Disaster Loan (EIDL) The online application for EIDLs is open right now and…