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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Resources
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:
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 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 ...
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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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Confused by the terminology? Check our Glossary of Terms