AICPA FVS Executive Committee submits comments to the DOL
The AICPA Forensic and Valuation Services Executive Committee (FVSEC) recently sent the DOL a comment letter opposing the Department’s proposal to change the definition of the term “fiduciary.” According to the FVSEC, “we believe the DOL should not change the definition of fiduciary, rather we believe the DOL should implement rules to ensure only qualified [...]
ESOP compliance: some new free resources from WMA
The following articles from the most recent issue of Willamette Management Insights (Winter 2011) are available on WMA’s website: “The ESOP Feasibility Study” by C. Ryan Stewart “Retained Shareholder/Executive Reasonableness of Compensation in the ESOP Sponsor Company” by Robert F. Reilly “Reconciling the Current Employer Stock Valuation with Prior Stock Valuations” by Malcolm (“Mike”) R. [...]
DOL schedules February 3 deadline for comments on proposed rule requiring ESOP valuators be fiduciaries
The DOL’s Employee Benefits Security Administration is holding a hearing regarding the proposed rule regarding the definition of a fiduciary, which included mandating all valuators of private company ESOPs be fiduciaries to the ESOPs they valuate. The hearing is scheduled for March 1, 2011 in Washington, D.C. and the DOL is accepting public comments until [...]
Walker recommends ESOP Association’s new “Repurchase Obligation and Valuation” report
“Repurchase obligations are a hot issue in ESOP valuations,” Donna Walker (Columbia Financial Advisors) told the audience at the ASA/CICBV Business Valuation Conference in Miami. “Many believe that the appraisal profession’s failure to incorporate the RO in an ESOP appraisal will result in an inability for any ESOP company to sustain itself over time,” Walked [...]
ESOP repurchase obligation – part of the appraiser’s due diligence
During last week’s webinar, “ESOP Valuation: Repurchase Obligations”, attorney Jared Kaplan (McDermott Will & Emery) and appraiser Robert Gross (Prairie Capital Advisors) agreed that the way a repurchase obligation (RO) is handled by the Company should be a part of the valuation process. An ESOP RO is a bigger issue now than it was 30 [...]
Valuing ESOP put options…and other valuation issues…addressed at next week’s webinar
Join Jared Kaplan (McDermott Will & Emery) and appraiser Robert Gross (Prairie Capital Advisors) next week for “ESOP Valuation: Repurchase Obligations.” As these two experts will show, a company may be able to exercise “put” options defined in their ESOP in a “financially neutral” manner, but such transactions have serious consequences on the operation and [...]
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