What Makes a Good ESOP Candidate?

• Improve business performance though equity incentives
• Enable shareholders to sell their stock on a tax-free basis within the next five to 10 years
• Enable shareholders to diversify their holdings in the company on a tax-free basis and still maintain control of the company
• Buy-out inactive minority shareholders on a tax-deductible basis for the corporation and a tax-free basis for the selling shareholders
• Grow the company though acquisitions on a tax-deductible basis
• Share equity in the company with employees to attract, retain and reward a productive workforce

• Eligible payroll of approximately $1 million or more
• At least a five year business history
• A business with a current minimum market value of at least $3 million - $5 million
• C or S corporation tax status
• Capable successor managers
• Good revenue and earnings history and the ability to secure financing