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ESOPs and Stock Plans

Valuation services for employee stock ownership plans

The Employee Stock Ownership Plan (“ESOP”) and employee stock purchase plans are popular methods of compensating and motivating employees, providing creative tools for succession and estate planning, and raising capital for many purposes on a tax-deductible basis.

A valuation of an ESOP is generally more complex than a standard business valuation. ESOPs face scrutiny from both the Internal Revenue Service and the Department of Labor. Due to the complex nature of the valuation, it is important the valuation professional have considerable experience valuing ESOPs. Plante Moran’s valuation service professionals have conducted a multitude of ESOP and employee stock purchase plan valuation engagements, and have significant experience advising and determining whether the parameters of a given transaction satisfy the adequate consideration requirements under ERISA and the guidance provided by the Department of Labor.

Plante Moran’s business valuation team can provide the following ESOP valuation services:

  • Provide transaction structure advice and assist in the design of the ESOP securities 
  • Provide adequate consideration and independent valuation opinions 
  • Assist clients in responding to ESOP participant challenges 
  • Provide required periodic / annual update valuations 
  • Provide solvency opinions 
  • Provide fairness opinions