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Iowa Employee Stock Ownership Plan

When owners wish to retire or otherwise sell their business, they are often unsure which resources to turn to.  An employee stock ownership plan (ESOP) is both a tool for allowing the owners of companies to share the business equity with employees and a retirement plan for those employees.

Businesses that have successfully implemented ESOPs have seen a number of benefits, including:
  • Employees gain an ownership stake in the business, increasing their personal wealth without the risks associated with creating or purchasing their own business.
  • Employee job security and personal satisfaction increase.
  • ESOP businesses are more productive and more profitable, last longer in the marketplace, and provide greater shareholder returns.

It can be a great thing for the community if the business is sold to the existing employees, through an ESOP, rather than to an out-of-state buyer that may shift jobs and profits out of the community.  For these reasons, the State of Iowa has passed two pieces of ESOP-related legislation: ESOP Formation Assistance, and a Capital Gain Deduction for Sale of Stock to an ESOP.

To Learn More

Iowa Economic Development Authority's ESOP Information Page
Phone: 515.725.3014
Email: businessfinance@iowa.gov

Iowa-Nebraska Chapter of The ESOP Association
     Find a Vendor to Assist
Phone: 763.785.4122
Email: dwalseth@esopexec.org


Thinking about selling your Iowa business? Give our Iowa Business Concierge a call for assistance at 866-537-6052 or via ​an online form.