The Top 10 of ESOPs

Let’s face it, Americans love top 10 lists.  David Letterman includes one in every episode of the show, and if you Google top 10 lists you will find an array of results that range from the predictable to the just plain strange.

HZ1427A recent search result included:

  • 10 absurd trademark claims
  • 10 video game characters with real-life prototypes
  • 10 competitive eating achievements NOT to be tried at home

I recently put together a top 10 list (of sorts) for Employee Stock Ownership Plans (ESOPs). It outlines in ten steps the activities that need to be completed to put a plan in place.

The ten steps are:

(1)        Engage your ESOP consultant

(2)        Conduct an ESOP feasibility analysis

(3)        Identify your ESOP team

(4)        Obtain appraisal for ESOP purposes

(5)        Structure the transaction

(6)        Finance the transaction

(7)        Conduct due diligence

(8)        Review plan details

(9)        Facilitate rollout to employees

(10)   Administer the ESOP

If you are considering an ESOP to help you plan for diversification or succession, you may find this top 10 list helpful.  You can find additional information at: 10 Steps to setting up an ESOP. 

In addition to blogging here, I also tweet regularly about topics of interest to ESOPs. Click to follow me on Twitter-  @jlripperger.

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Affiliation Disclosures

While this communication may be used to promote or market a transaction or an idea that is discussed in the publication, it is intended to provide general information about the subject matter covered and is provided with the understanding that none of the member companies of The Principal are rendering legal, accounting, or tax advice. It is not a marketed opinion and may not be used to avoid penalties under the Internal Revenue Code. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, or accounting obligations and requirements.

Insurance products and plan administrative services are provided by Principal Life Insurance Company a member of the Principal Financial Group® (The Principal®), Des Moines, IA 50392.

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