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. 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.
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.
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.