ESOP companies proved to be resilient during the Great Recession and have since attracted new entrants into the ESOP financing market, according to William Stewart of PCE Companies, who gave the firm’s yearly market update in a recent webinar. Capital availability, valuations, and demand will drive new ESOP formations. Stewart reports ESOP companies are still attractive exit opportunities because of tax advantages and employee ownership. “Desire for diversification, capital gains tax deferral (1042), and partial liquidity options are driving demand,” he said.