In What Kinds of Privately Held Companies Do ESOPs Work Best?

The ideal private company candidate has strong cash flow and a history of increasing sales and profits.

ESOPs operate successfully in a broad range of companies large and small, public and private. The ideal private company candidate will meet most of the following criteria:

  • The company has strong cash flow and a history of increasing sales and profits.
  • The company has consistently been in a high federal income tax bracket.
  • The company has substantial stockholder equity.
  • The company has capable second-line management in place.

SES ESOP Strategies also offers an online tool to help you self-assess ESOP feasibility. Our qualifying questions may help you in deciding to take the next step.