by: Cook, Larry R.
Source: Financial Valuation of Employee Stock Ownership Plan Shares
It has been estimated that within the next 10 years, Baby-Boomer business owners will consumate a whopping $6 trillion in business interest transfers. Which of these companies are ESOP candidates? Not surprisingly, an ESOP is on the radar screen for many owners, with the acceptance of qualifying S corporation shareholdings in ESOPs, a favorable and reasonable lending environment, and a favorable tax impact for the outside shareholder and employee participant. With the rise in popularity of ESOPs, more companies now consider their benefits. Helpful research has been conducted since the emergence of ESOPs in an attempt to assist outside shareholder owners to make an informed decision.
Link: Identifying Good ESOP Candidates
Publication Date: 2005-06-01