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Thought Leadership

Anatomy of an ESOP



August 14, 2023


January 23, 2016
White Papers

Employee Stock Ownership Plans from the
Perspective of the Business Owner

ESOPs can pay fair market value for the stock: Stock purchased by an ESOP must be appraised by an independent third party expert working with a trustee for the ESOP who must also be independent from the seller. The ESOP is permitted to pay a negotiated price that is up to full fair market value. If 100% were sold to the ESOP, the seller would typically not bear the Company’s expenses related to the ESOP transaction. Also, no business brokerage or similar fees are typically paid.

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Mark D. Welker