Business Valuation for ESOPs
If your goal is to perpetuate your business and provide for your
employees' future, an Employee Stock Ownership Plan (ESOP) may be an
option for your succession plan. A
critical component of your ESOP plan is your company's value. Both in
the formation of the ESOP and the ongoing operation of the ESOP, annual
valuations are required to determine your organization's value. The valuation process takes into account:
- the feasibility process
- plan design, (participant eligibility, vesting schedules, distributions, etc.),
- financial analysis
- adherence to applicable laws and regulations
- collaboration with financial institutions, legal representatives and
plan trustees whose services are required in the process
We
conduct both a qualitative and quantitative analysis of your business,
reviewing detailed information on the business, its industry,
management, competition, financial performance, operating conditions
and future prospects. And, we'll provide expert advice on issues specific to ESOP
organizations.
Business valuations for ESOPs are performed in accordance
with the Uniform Standards of Professional Appraisal Practice of The
Appraisal Foundation and the Principals of Appraisal Practice &
Code of Ethics of the American Society of Appraisers.
We use our Healthy Growth ChecklistTM, to review the need for these services with our clients. We want to help you too. Contact us to schedule your own no-cost, no-obligation Healthy Growth Checklist review.
Related Articles:A 2012 business resolution worth keeping.As we start a brand new year, many people have begun the annual New Year’s resolution ritual. Yet as we all know, no matter how well intentioned we are, most resolution...
read moreStudent Financial Aid: planning now eliminates stress later.This is the time of year parents and students are bombarded by deadlines for college admission applications, scholarship applications and financial aid applications. Knowing ...
read more