When company owners get ready to sell their businesses, what prevents them from considering an ESOP? Sometimes it’s just ignorance or bad advice; sometimes it’s a preference for a different kind of sale. But often it’s the fact that they can’t get an all-cash deal. Banks may fund part of the transaction, but sellers may find themselves taking back sizable notes of 5-10 years, with corresponding financial risk.

The result, say three employee-ownership financial experts, is that  ...