Recently announced transactions using employee stock ownership plans (ESOPs) as a financing tool in mergers and acquisitions have highlighted the role that an ESOP can play in such transactions.

Following is general information about using ESOPs in mergers and acquisitions. ESOPs are subject to numerous legal and financial requirements and are not suitable for every corporate transaction. Therefore, this information sheet should not be considered to constitute legal advice, but we will be happy to discuss ESOPs with you in more detail.