The greater the number of “yes” responses, the better the candidate.
1. The entity is a corporation taxed in the normal manner. Please check type of Corporation. “C” corp. ___ “S” corp. ___ Professional corp. ___ Other ____
___ Yes ___ No 2. The company is closely held, or publicly traded with significant ownership in a few hands.
___ Yes ___ No 3. The company has payroll adequate to support an ESOP (minimum $1,000,000).
___ Yes ___ No 4. The company has a strong pretax, pre-distribution/bonus earnings and cash flow over the previous few years.
___ Yes ___ No 5. The company expects to have strong pretax, pre-distribution/bonus earnings over the next few years ($1,000,000+).
___ Yes ___ No 6. The company has paid substantial federal income taxes during the past few years.
___ Yes ___ No 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.
___ Yes ___ No 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).
___ Yes ___ No 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.
___ Yes ___ No 10. The owners are psychologically willing to share ownership with their employees, assuming an attractive transaction can be arranged.
For “qualified” parties, complete our Confidential Preliminary Assessment Questionnaire.
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.