ESOPs & Stock plans
The Employee Stock Ownership Plan (ESOP) and employee stock purchase plan 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. What you might not know is that a valuation of an ESOP is 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’s important that valuation professionals have considerable experience valuing ESOPs. We can help.
Areas of Focus
Accounting for profits interests in limited liability companies
General guidelines on accounting for this special form of equity compensation
ESOPs and Stock plans Thought Leadership
The value of equity-based compensationTotal shareholder return plans, a form of performance-based equity compensation, are gaining widespread traction, offering companies and staff alike many advantages. Here's what you need to know.
Attain business goals with profits interestsProfits interests can help LLCs attract, retain and reward employees, provide tax benefits, and support business objectives. Here's what you need to know to use them strategically.
Equity compensation in venture capital and private equityWhen it comes to valuation of equity compensation in privately-owned companies, the OPM Backsolve method can be useful for companies with a complex capital structure with multiple classes of equity. Here's our overview of this best-practice method.
We've conducted a countless ESOP 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.