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This ESOP restaurant start-up and acquisition fund

March 5, 2019

This blog post is about an idea that for me is almost 30 years old it works like this

esop-acquisitions_new_south_conf_10-22-09-1

One recent idea is that you acquire a 100 percent ESOP that is not leveraged by another ESOP that is 100% leveraged. So one brewpub buys out another and both are ESOPS. This means a long-standing ESOP owned Brewpub is cashing out its employees into the rollover investments and the old and new employees of the acquiring ESOP brewpub start over.

Brewpub A has a leveraged ESOP use the funds to by Brewpub B a long-standing ESOP with fully vested employees. All the Employees at B are cashed out and become employees at A.

This plan allows for continued ESOP participation in the ESOP in the Merged Entity and the cashed out employees could you the cash out to increase rates of homeownership

So I propose to be ESOP B and I might make a deal with a union to use their hiring hall in exchange for paying for my ESOP feasibility studies and incorporation fees (can be $100,000) Some of these ideas are here, the public benefit esop owned restaurant acquisition corporation (1)    And    university of michigan student government as americorps vista-final -2      and another  the jack in the box michigan disability

A new idea is that nonprofit receives a grant to do an ESOP feasibility for its clients to use, This might work for San Francisco’s nonprofit restaurant incubator La Cochina each graduate or group of graduates would have a Leveraged ESOP loan to build a large brick and mortar establishment.

These ESOPS if newly created could operate with a union a training hall, our training hall would be unique in that it would teach culinary and ESOP skills IE the employees would learn how to be employee owners and managers and learn a rarely taught skill union democracy and the duty to properly represent union members.

 

Edit  25 September 2019

 

 

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