Some companies want a way to get stock to the broader base of their workforce (with some extra "oomph" for their senior people), that is deductible and coordinates with their existing shareholder strategies, but that isn't as complex as an ESOP. Yet ...
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ESOP Blog
ESOP Trustee Indemnification: Three Things To Remember
In this article, we're revisiting three court cases involving ESOP fiduciary indemnification that left some head-scratching over when and how an ESOP company can indemnify its ESOP trustees. This year being the fifth anniversary of the last ...
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When To Choose An ESOP Succession Plan Over A Conventional Exit Strategy
An ESOP succession plan offers a number of advantages to sellers, companies and employees that no conventional exit strategy can match. However, those unique advantages are only worthwhile for those who find the very nature of ESOPs worthwhile. On ...
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ESOP Suitability: How Much Revenue Must A Company Have To Be Big Enough?
For ESOP suitability purposes, we look at three measures of revenue:
EBITDA
EBITDA is usually the most significant measure appraisers use to determine the value of the company. The higher the EBITDA, the higher the value of the ...
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ESOP: How It Differs From Other Retirement Plans
ESOPs are retirement plans. As such, ESOPs are required to follow all the basic rules for tax qualification and non-discrimination that other retirement plans such as 401(k)s must follow. As in a 401(k) plan, participants can roll their ESOP ...
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ESOP Succession Planning: Two Reasons It Might Be Right For You
Broadly speaking, ESOP succession planning is a great option for companies looking to accomplish one of two goals — an owner exit strategy and employee benefits planning. And the great thing about an ESOP is that it can often accomplish both of those ...
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