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 ...
[Read more] about ESOP Suitability: How Much Revenue Must A Company Have To Be Big Enough?
Resources
ESOP Distribution: Court Decided Validity
Two questions were at the heart of an retirement plan court case involving an ESOP distribution that was decided in 2018:
When is a retirement plan distribution a distribution?Is a retirement plan distribution subject to state law or the federal ...
[Read more] about ESOP Distribution: Court Decided Validity
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 ...
[Read more] about ESOP: How It Differs From Other Retirement Plans
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 ...
[Read more] about ESOP Succession Planning: Two Reasons It Might Be Right For You
ESOP Tax Benefits And Flexibility: Strong Advantages For Sellers
ESOP tax benefits for selling shareholders can be significant and it can take on many forms depending on the seller(s)' goals.
Tax Benefits For C Corporation Owner
An owner of a C corporation can defer tax on the sale of stock as long as the ...
[Read more] about ESOP Tax Benefits And Flexibility: Strong Advantages For Sellers
Two Truths About Establishing An Equity Compensation Plan That Are Imperative To Its Success
We hear over and over from our clients and referral sources looking for solutions to long-term equity incentive compensation planning, "I'd like to compensate my employees in stock to incentivize them and motivate them to help grow the company." This ...
[Read more] about Two Truths About Establishing An Equity Compensation Plan That Are Imperative To Its Success
Confused by the terminology? Check our Glossary of Terms