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ESOPs
can recover taxes paid in prior years.
ESOPs
will let the corporation refinance existing debt so as to deduct both
principal and interest payments; debt payments are
made with pre-tax dollars.
ESOPs
infuse working capital and cash flow to the
corporation unlike pension or profit sharing plans that reduce corporate
cash.
ESOPs
give the corporation tax deductions with no cash expenditure.
The
corporation
can use the tax savings to reduce prices and increase market share.
ESOPs
let you acquire your suppliers or competitors with pre-tax dollars while
the price per share is depressed.
ESOPs
help you become diversified through acquisitions with pre-tax dollars as
a defensive measure during a slump.
ESOPs
reduce the cost of employee benefits significantly.
ESOPs
allow the corporation to
give loyal employees a piece of the action to reduce pressures for a
raise in salary.
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