NOTE: The changes that the Main Street Employee Ownership Act made to the Small Business Administration’s lending rules for ESOP loans to fund transactions went into effect April 1, 2019. The updated information is here.
Passage Of The ...
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Resources
Eligible Individual Account Plan: The Other Employee Stock Ownership Plan
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 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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Withdrawal Liability: Heavenly Hana LLC v. Hotel Union & Hotel Industry of Hawaii Pension Plan
In what should serve as a clear warning to buyers acquiring assets involving multi-employer pension plans (MEPs), the Ninth Circuit Court of Appeals' June 1 decision put the onus on buyers to ensure that withdrawal liability is accounted for during ...
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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:
Earnings before interest, taxes, depreciation, and amortization (EBITDA);Free cash flow; and,Taxes paid.
EBITDA
EBITDA is usually the most significant measure appraisers ...
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Confused by the terminology? Check our Glossary of Terms