This article describes the use of reverse allocations in Employee Stock Ownership Plan (ESOP) companies to provide a meaningful number of shares for newer and younger employees and to help ensure the ESOP's sustainability.
ESOPs reward longevity and provide a meaningful stake in a company's ...
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Ken Ruthenberg And ESOP Attorney Kevin Long Named Among Best Lawyers In America
Best Lawyers in America has again honored Employee Benefits Law Group by naming Ken Ruthenberg and ESOP Attorney Kevin Long to its list. Both have earned the recognition every year since 2001.
For over 30 years, Best Lawyers has used a peer-reviewed survey of more than eight million ...
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ESOP Planning: How Many Shares Should The Owner Sell
Figuring out how many shares to sell to the ESOP is a fundamental decision part of the planning process. In the final installment of our 4-part series, we look at some of the factors in play when making that calculation. In Part 1 we look at ESOP Basics. Part 2 discusses how to determine if an ESOP ...
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ESOPs: The Three Types
This article will acquaint you with the utility of the ESOP as both a technique of corporate finance and an employee benefit plan. It is important to note, however, that there are other employee benefit plans that can be used to invest in stock of the employer sponsor. There are profit ...
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ESOP Succession Planning: A Powerful Tool For Your Business
An ESOP can be a powerful succession planning tool for your business. But relatively few advisors in the marketplace know enough about ESOPs to give you the information you need. We'll give you a head start. Here are five ways an ESOP can fit, or even drive, your succession ...
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ESOP Distributions: Problems To Avoid
Any ESOP attorney or consultant can tell you that ESOP distributions can be the most complex and challenging area of ESOP design and administration. As discussed in detail in our articles Designing And Drafting ESOPs[1], and Avoiding ERISA Liability Issues In ESOP Repurchase Liability Planning[2], ...
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ESOP Succession Planning: Aren’t ESOPs Expensive?
For those considering ESOP succession planning, Kevin Long compares the cost of an ESOP with a conventional third-party sale, and how selling to an ESOP can actually cost much less.
Transcript:
As ESOP attorneys, we hear this question all the time. Aren't ESOPs expensive? Aren't they ...
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SBA-Guaranteed ESOP Loans: Big News For Small Business
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 Bill
Inside the recently signed $717 billion, Fiscal Year ...
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Understanding ESOPs: How They Benefit Sellers, The Company, And Employees
Understanding ESOPs can be daunting at first glance. This article looks at how ESOPs can be a cash-flow-efficient and tax-advantaged option that merits careful consideration when compared to selling the company or merging with a third party.
At some point, all privately held companies ...
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