• Preliminary Assessment
• Candidate Check List
• Tax Shields
• Legislative Updates

ESOP Candidate Check List

The greater the number of “yes” responses, the better the candidate.

Yes / No

___ ___ 1. The entity is a corporation taxed in the normal manner. Please check type of corporation.

"C" corp. ___ "S" corp. ___ Professional corp. ___ Other ____

___ ___ 2. The company is closely held, or publicly traded with significant ownership in a few hands.

___ ___ 3. The company has payroll adequate to support an ESOP (minimum $1,000,000).

___ ___ 4. The company has a strong pretax, pre-distribution/bonus earnings and cash flow over the previous few years.

___ ___ 5. The company expects to have strong pretax, pre-distribution/bonus earnings over the next few years ($1,000,000+).

___ ___ 6. The company has paid substantial federal income taxes during the past few years.

___ ___ 7. At least some stockholders are motivated to sell some stock; e.g., planning for retirement, liquidating an estate, entering a new business venture, children not involved in business, etc.

___ ___ 8. If one or more principal executives plans to depart in connection with the sale, there is strong management available to take their place(s).

___ ___ 9. The company customarily makes payments to a 401(k) or profit sharing or other employee benefit plan that could in the future be made to an ESOP.

___ _ _ 10.The owners are psychologically willing to share ownership with their employees, assuming an attractive transaction can be arranged.

For “qualified” parties, complete Confidential Preliminary Assessment Questionnaire [Click Here] and forward along with any other pertinent information to paige@esopservices.com

You will be contracted by an ESOP specialist to discuss your goals and objectives and the process of assessing an ESOP to meet your goals and objectives.