Private Equity and ESOPs

Summary

Employee stock ownership plans have had a fascinating and somewhat checkered past. This article examines the concept, the benefits, the problems and why this unusual form of ownership may work well for private equity investors. The case of Dan River is noted in detail; Avis Rent-a-Car and Simmons Company are discussed in brief. The future of ESOPs, given recent events such as Enron, is reviewed.