My company is looking at an acqustion of a company with an ESOP plan. Can anyone tell me the key ESOP issues to look at during the due diligence process? It will be a stock purchase, not an asset deal. I don't know yet if the stock is publicly traded. Thx.

Spock:

There are signficant and very complex issues that must be dealt with. The issues are far to many and would require to much detail for this post.

This is especially true if the acquistion target is privately held. The valuation isssues are very complex.

You should ensure that you have competent ERISA Counsel with specific expertise in dealing with ESOPS.

If in fact it is a stock purchase versus asset purchase, that may simplify things a little.