The need for a business valuation can arise for several reasons: incoming investors, lawsuits, inheritance, business sale, partner exit, public offering, or networth certification. So, how would you go about estimating this value? Here you can use the professional services of Legal Buddy. Though it is a complex subject that has confounded the best investors and academicians but yes there is a certain common sense about business valuation and which provides a reasonably close estimate.

ESOP is a frequently used incentive mechanism used by organizations. There are various reasons for which the employees of a company are given such stock options. The phenomena of stock options is more prevalent in start-up companies which cannot afford to pay huge salaries to its employees but are willing to share the future prosperity of the company. In such cases the employees are given the stock options as part of the compensation package.

It is a common practice among organizations to reward performing employees by giving ESOPs as a part of the salary and ensure long-term commitment of the employee. It aims at improving the performance of the company, increasing the value of the shares by involving stock holders, who are also the employees, in the working of the Company and further, ESOPs help in minimizing problems related to incentives. However, one must also analyze the tax implications of ESOPs for employee as well as the company.