This is the third in a series of articles designed to inform you of the significance of the so-called "coverage rules" and the "minimum participation rules" applicable to qualified retirement plans, (here are Part 1 and Part 2 if you missed them). In ...
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Corporate Governance for Private ESOP Companies
Retirement plans are the principal institutional shareholders in the stock markets. These institutional investors believe that sound corporate governance is a key ingredient in successful companies. To maximize their returns, they look for companies ...
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How An ESOP Program Is Put Together – Some Assembly Required
Updated February 8, 2021
Unlike the typical 401(k) plan, ESOPs aren't an "off-the-shelf" retirement plan.
Until recently, each ESOP plan had to be individually designed to serve a specific set of purposes. The IRS recently allowed ESOP plan ...
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ESOP Plan Design And Document Drafting
Updated August 2020
If we're drafting your ESOP plan document, then you'll become familiar with our ESOP Plan Design Checklist. That checklist is what jump-starts our conversation with you about how your ESOP should be designed. This article tells ...
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When To Choose An ESOP Succession Plan Over A Conventional Exit Strategy
An ESOP succession plan offers a number of advantages to sellers, companies and employees that no conventional exit strategy can match. However, those unique advantages are only worthwhile for those who find the very nature of ESOPs worthwhile. On ...
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ESOP Suitability: How Much Revenue Must A Company Have To Be Big Enough?
For ESOP suitability purposes, we look at three measures of revenue:
Earnings before interest, taxes, depreciation, and amortization (EBITDA);Free cash flow; and,Taxes paid.
EBITDA
EBITDA is usually the most significant measure appraisers ...
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