Employee Stock Ownership Plans (ESOP) Valuations

In the last several years, employee ownership has become an ever more popular means of compensating and motivating employees. Selling company stock to employees can also offer unique opportunities for both succession and estate planning, thereby providing the closely held business a vehicle for continued growth and success. Furthermore, an ESOP can be utilized to raise capital for nearly any purpose on a tax-deductible basis or to create shareholder liquidity on a tax-advantaged basis.

With extensive experience gained by way of ESOP financial advisory roles over the course of nearly a decade, FMV professionals are highly qualified to advise trustees on the structural and financial issues inherent in both new and existing ESOPs. Our professionals advise and ascertain whether the parameters of a given transaction satisfy the adequate consideration requirements under ERISA and the regulations proposed by the Department of Labor. Our professionals also have the ability to provide opinions as to whether or not a given transaction is fair to the ESOP from a financial point of view and as to other structural and financial matters, as determined by the trustee.

FMV Opinions provides the following ESOP financial advisory services:

  • Represents the ESOP with respect to all financial matters;
  • Provides transaction structure advice;
  • Negotiates on behalf of the ESOP;
  • Assists in the design of ESOP securities;
  • Provides adequate consideration, fairness, and solvency opinions; and
  • Provides required periodic update valuations.
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