ESOP Valuation Services

Employee stock ownership plans (ESOPs) can be a promising opportunity for business owners and employees. They can provide liquidity and tax advantages for business owners, significant tax savings for the company, and the opportunity for employees to experience company ownership.

For owners who choose to sell all or a portion of their company to its employees, this exit strategy creates a market for their company shares and represents a liquidity event. It’s also a powerful succession-planning and management retention tool. Employees, meanwhile, stand to benefit from ownership through stock held in their retirement accounts.

Once you’ve determined your company is a suitable candidate, we can help navigate the sale of your shares as either your financial advisor or as a financial advisor to the ESOP trustee. As a financial advisor to the ESOP trustee, we’ll provide an independent valuation report for a purchase or sale of company stock, or the transaction, as well as annual valuation updates.

As financial advisory to selling shareholders, we’ll provide a valuation allowing owners to understand the value of the ownership they’re selling. We’ll also assist in assessing the financial impact of various proposed transaction structures.  

ESOP Insight

It’s essential that owners understand the full value of the stock they’re selling as well as helping employees receive its full benefits.

With more than 2,000 employee ESOP valuations performed, our professionals provide not only the required independence, but more importantly extensive ESOP valuation experience through a variety of industries. ESOP valuations can have complex nuances, whether it’s a transactional or annual valuation for a company with as few as 20 employees to those with more than 1,000 employees.

Our senior advisors are Chartered Financial Analysts and Accredited Senior Appraisers, each with more than 20 years of experience. They’re also members of the national ESOP Valuation Advisory Committee and regularly present at regional and national conferences on ESOP related topics.

ESOP Scenarios

There are two opportunities to consider an ESOP valuation planning for new ESOP formations and for annual valuations for existing ESOP companies.

New ESOP Formations

Both the buyer and seller need their own financial advisor. 

For sellers, an advisor can offer:

  • Preliminary valuation
  • Assistance negotiating
  • Transaction structure analysis

On the buyer side, an advisor offers:

  • Trustee valuation services
  • Transaction structure analysis
  • Negotiation assistance
  • Other transaction-related services such as a bridge letter and fairness or adequate consideration opinion
Annual Valuations

Annual valuations are integral to not only regulation compliance, but also for company management to understand the drivers of company value, and for employees to know the value of their retirement account. We can prepare company valuations each year, meeting the Department of Labor’s requirement that an independent third-party valuation expert provides an opinion of the fair market value of ESOP stock at least annually.

For a more complete list of our valuations services, visit our main valuations page.

Insights


Article
Conducting transaction preparedness before selling your business could save time, resources, and money—and add value for you and your business.


Article
An employee stock ownership plan (ESOP) motivates, retains, and rewards employees who help make a business successful. It serves as a great exit strategy with some fantastic tax benefits, but it’s also a retirement benefit for your employees.

Primary Contacts