Written for ESOP fiduciaries and trustees, this Brief discusses the interplay of synthetic equity, warrants, and various valuation methods.
The ESOP Association
ESOP Association Resources
ESOP Brief, Synthetic Equity, Warrants, Options, Valuation, Resource
ESOP Brief, Repurchase Obligation, Opportunity Cost, New Present Value, Redeem, Recycle, Resource
Using opportunity cost to understand the true cost of the repurchase obligation on an ESOP company’s share price.
ESOP Brief, Repurchase Obligation, Valuation, Resource
Understanding the repurchase obligation and its effect on an ESOP company’s valuation.
Resource, ESOP Brief, ESOP Benefits, Succession Planning, Tax Benefits, Financing, Leveraged ESOP, Diversification
A basic guide summarizing the unique benefits Employee Stock Ownership Plans offer to owners, employees, and communities. This ESOP Brief is available to the public as an informational resource.
ESOP Brief, Dividends, 404(k), Resource
There are various tax incentives to encourage companies to consider an ESOP. This Brief discusses an employer’s ability to use tax deductible funds to service ESOP debt and the advantages of deductible cash dividends.
ESOP Brief, Repurchase Obligation, Valuation, Recycle, Redeem, Resource
This ESOP Brief explains how an ESOP company’s repurchase obligation should be understood and managed, and how the repurchase obligation associated with the ESOP should be reflected in the valuation.
ESOP Brief, Repurchase Obligation, Redeem, Recycle, Opportunity Cost, Resource
This ESOP Brief introduces the concept of opportunity cost and the implications for share price when private companies devote resources to fund repurchase obligations.
ESOP Brief, Repurchase Obligation, Resource
Both S corporation and C corporation ESOP companies must be prepared to pay cash equal in value to stock in a participant’s account, per ERISA distributions rules.
ESOP Brief, Distributions, Put Option, Resource
A guide to the rules surrounding ESOP distributions including an overview of The Put Option.
ESOP Brief, Leveraged ESOPs, Convertible Stock, Financing, Resource
How to use convertible preferred stock in an ESOP.
ESOP Brief, Leveraged ESOPs, Non-leveraged ESOPs, Financing, Resource
This Brief describes common accounting practices for non-leveraged and leveraged ESOPs.
ESOP Brief, Fair Market Value, Economic Value, Valuation, Distributions, Repurchase Obligation, Resource
A summary of the valuation issues S corporations can encounter. This is a highly technical ESOP Brief.
ESOP Brief, Valuation, Adequate Consideration, Resource
This Brief answers important questions you may have about ESOP stock valuation, including who may value a stock and how valuations occur.
ESOP Brief, Culture, Productivity, Resource
Why should you consider employee ownership in your company? Does it work? What are the advantages? These questions and more answered in this ESOP Brief.
ESOP Brief, Voting, Voting Rights, Resource
A breakdown of the voting rights of ESOP stock participants and beneficiaries.
ESOP Brief, Tax Benefits, Leveraged ESOPs, ESOP Financing, Resource
A broad overview of the unique characteristics and advantages of ESOP financing as compared with conventional debt financing.
ESOP Brief, Policy, Employee Ownership, Resource
An overview of why employee ownership should be a part of national public policy. This is a must-read for executives, owners, and anyone with a stake in the employee ownership community.
ESOP Brief, Tax Benefits, 1042, Dividends, Why Sell to an ESOP, Resource
A summary of the mechanics and rules of the tax-free 1042 rollover and related matters.
ESOP Brief, Performance, Revenue, Productivity, Resource
ESOPs can impact corporate performance in a number of important and beneficial ways.
ESOP Brief, Tax Benefits, 1042, Dividends, Resource
A guide to the tax advantages of ESOPs for business planning including both C Corporation and S Corporation tax advantages.
ESOP Brief, KSOPs, 401(k), Resource
A summary of how ESOPs and 401(k) plans can work together to benefit the employee owner and the employer.
ESOP Brief, Tax Benefits, 1042, Dividends, 404(k), 409(p), Resource
S corporation election can result in substantial tax savings at the corporate level, but some factors may not make S election viable for all companies.
ESOP Brief, ESOP Plan Design, Repurchase Obligation, Resource
A summary of the key steps involved in designing and implementing an ESOP for a privately held company.
ESOP Brief, Benefits, Retirement Benefits, Diversification, Distributions, Resource
A broad overview of how ESOPs compare to other employee benefit plans, like 401(k) plans, and what the benefits of ESOPs are to employee owners.
ESOP Brief, Retirement Benefits, Diversification, Distributions, Resource
ESOP participants nearing retirement age have the option, by law, to diversify a portion of their ESOP stock. This ESOP Brief discusses why and how participants may consider this option.
ESOP Brief, Fiduciary Liability, Trustee, Prohibited Transaction, Self Dealing, Adequate Consideration, Breach, Resource
A guide to the ERISA rules all ESOP fiduciaries need to know to fulfill their obligations.