The start of 2015 is just around the corner and it appears to be an excellent time to discuss Employee Stock Ownership Plans with existing business-owner clients and prospects. Why now? Because of the three major factors driving this opportunity: 

  1. Business valuations have been increasing.

  2. Capital markets are more liquid.

  3. The population continues to age. 

Looking at each of these factors can help a financial professional approach their clients and prospects about the value of ESOPs.

Business valuations have been increasing

The recession negatively impacted the value of most businesses. As a result, the number of M&A transactions, including the formation of ESOPS, slowed dramatically. Business owners have been waiting for values to return to their pre-recession levels before moving forward with any type of sale. 

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