In what kinds of privately-held companies do ESOPs work best?
ESOPs operate successfully in a broad range of companies – large and small, public and private. The ideal private company candidate for an ESOP 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. Return to the top of the page.
