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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.

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ESOPs and Stock plans Thought Leadership

  • The value of equity-based compensation
    Total 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.
    David Howell David Grubb
    Article October 07, 2016 12 min read
    Image of people working
  • Attain business goals with profits interests
    Profits 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.
    David Howell
    Article August 08, 2017 4 min read
  • Equity compensation in venture capital and private equity
    When 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.
    David Howell
    Article June 19, 2017 6 min read
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  • Is it fair?
    David Howell
    Article April 22, 2013 8 min read
    closeup of team in a meeting
  • Is your equity compensation plan fair?
    David Howell
    Article March 26, 2013 1 min read
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Our Team

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.

Contact

Paul Taylor ASA, Partner, Forensic & Valuation Services Group Leader