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Candidate Profile
ESOP Candidate Profile Checklist
Is an ESOP for you? If most of the following describes your company, the answer may be “yes”.
| Yes | No | ||
| □ | □ | Company has unused debt capacity (not heavily leveraged). | |
| □ | □ | Company is profitable and can easily cash flow additional ESOP acquisition debt. | |
| □ | □ | Company and/or its owners pay taxes at or near the top marginal bracket. | |
| □ | □ | Company has been doing business successfully for at least five years. | |
| □ | □ | Company has payroll of at least $1,000,000, excluding seller. | |
| □ | □ | Company producing sales of at least $10,000,000 annually. | |
| □ | □ | Company doing business in solid industry. | |
| □ | □ | Company with strong secondary management capable of taking over and desiring to do so. | |
| □ | □ | Company or majority shareholders desirous of buying out minority shareholders on tax-deductible basis. | |
| □ | □ | Management interested in making acquisitions or purchasing capital goods on tax-deductible basis. | |
| □ | □ | Company wanting to refinance existing debt, resulting in the tax-deductibility of both principal and interest on the new debt. |