Mastering the Fundamentals and Developments of ESOP Valuation
With the growing concern on DOL and IRS regulatory compliance, valuation plays a crucial role in the successful implementation, administration, and termination of employee stock ownership plans (ESOPs). Whether it is a business with an existing ESOP, or a business considering the plan, both should have a firm grasp of how the valuation process works.
In this LIVE Webcast, a panel of key thought leaders and ESOP professionals assembled by The Knowledge Group will go beyond the basics and key concepts of ESOP valuation and will help the audience determine whether an ESOP might be a good fit for their company.
The panel will also discuss, but not limited to:
- How Does an ESOP Work?
- Basic Valuation Process
- The Advantages and Disadvantages of ESOPs
- Tax Advantages from ESOP
- Methods and Current Trends.
- Fiduciary Internal Control Guidelines for ESOP valuations
- Common Mistakes Made During Valuation
- Preparing for and Responding to DOL audits
- Alternative Exit Strategies
- Criteria for Evaluating Alternatives
- Basic Overview of ESOPs (Introductory and background material – Rachel)
- Advantages and Disadvantages of ESOPs (Joan)
- Basic Overview of ESOP Valuations (when valuations are required, types of opinion, basic process and procedures – Bret)
- Board's and Trustee's Fiduciary Duties in ESOP Administration and Valuation (Joan)
- Process for obtaining an independent appraiser (Rachel)
- Valuation considerations – valuation approaches, levels of value (discounts and premiums), key assumptions, etc. (Bret)
- DOL investigations and litigation (Rachel)
- DOL Hot Button Issues Relating to Valuations (Bret)
- Negotiations in ESOP Stock Transactions (Joan)
- Best practices for communicating due diligence (Rachel)
- ESOPs and Alternative Exit Strategies (Joan)
- Summary (Joan, Rachel, and Bret)
Who Should Attend:
- Employee Benefits Attorneys
- Benefits Managers
- Compensation and Benefits Consultants
- Retirement Plan Financial Professionals
- Private and Public Companies
Rachel J. Markun is a Partner in the Napa and San Francisco offices of Hawkins Parnell Thackston & Young LLP. Ms. Markun advises clients regarding the corporate, tax and fiduciary issues relating to ESOPs and employee benefit plans. She has represented plan fiduciaries, employers and financial institutions in connection with legislative and regulatory initiatives relating to the Internal Revenue Code, ERISA, the federal securities laws, and the California tax laws. She has extensive tax expertise relating to tax-exempt entities including matters involving unrelated business tax issues and all aspects of retirement plan qualification issues. She represents retirement plan corporate sponsors in a variety of matters, including Internal Revenue Service audits and U.S. Department of Labor investigations. Ms. Markun has an active practice in addressing ERISA issues in litigation matters and in addressing regulatory matters involving ESOPs. She has extensive experience in substantive ERISA issues and in preparing defense strategies for ERISA cases, including privilege issues, co-fiduciary liability issue and damages issues. She counsels many ESOP companies and fiduciaries on a range of compliance, best practices and risk management issues. Ms. Markun is a frequent lecturer and author on corporate, tax and fiduciary issues relating to ESOPs and employee benefit plans.
Rachel J. Markun is a Partner in the Napa and San Francisco offices of Hawkins Parnell Thackston & Young LLP. …
Although she’s been practicing law since 1981, Joan is just as passionate as ever about helping clients solve their employee benefits problems. She’ll say she loves ERISA and ESOPs - - and she means it.
Her employee benefits practice includes representation of employers and fiduciaries in both the private and public sectors in the design, drafting, implementation, maintenance and compliance of qualified retirement plans, executive compensation, non-qualified deferred compensation arrangements, stock plans and health and welfare plans. Joan provides both technical advice and practical administrative counsel for sponsoring employers, plan administrators and service providers.
Although she’s been practicing law since 1981, Joan is just as passionate as ever about helping clients solve their employee …
Bret Tack is a Managing Director at Cogent Valuation, and currently manages its Los Angeles Office. Providing business valuation and related financial advisory services full-time since 1985, he has managed over 2,000 valuation engagements involving companies ranging in size from small closely held companies to multinational, publicly traded companies with revenues in the tens of billions. Bret has over 30 years of experience working with ESOPs and has provided hundreds of ESOP valuation and financial opinions (including fairness and solvency opinions). ESOP transactions Bret has worked on include initial purchase transactions (leveraged and unleveraged), multi-investor transactions, annual update valuations, and ESOP sale/termination transactions. Bret also has substantial experience supporting his opinions upon audit by both the Department of Labor and the Internal Revenue Service.
Mr. Tack has valued companies in virtually all major industries and has particular expertise in the aerospace, restaurant, medical device, entertainment, printing, retail, wholesale, computer hardware and software, internet, information and market research, professional services, financial services, real estate development and syndication, apparel, food and beverage, consumer products and miscellaneous manufacturing industries.
Bret Tack is a Managing Director at Cogent Valuation, and currently manages its Los Angeles Office. Providing business valuation and related …
Print and review course materials
Method of Presentation:
Experience in employee benefits law
NASBA Field of Study:
Accounting - Technical
NY Category of CLE Credit:
Areas of Professional Practice
Unlock All The Knowledge and Credit You Need
Leading Provider of Online Continuing Education
It's As Easy as 1, 2, 3
Get Your 1-Year All Access Pass For Only $199
About Hawkins Parnell Thackston & Young LLP
Over the last half century, Hawkins Parnell Thackston & Young LLP has grown to include more than 160 lawyers in 10 offices across the country. The team represents many of America’s largest corporations, small local businesses, and individuals in complex litigation and transactions. As national leaders in their fields of expertise, their ESOP, Employee Benefits, M&A, Tax & ERISA group brings extraordinary depth in perspective when advising clients in connection with retirement plans, equity incentives, executive compensation, shareholder issues, fiduciaries, mergers and acquisitions, and employment and benefits litigation throughout the country.
About McGrath North
At McGrath North, we pride ourselves on offering clients a sophisticated, nationwide legal practice that reflects the integrity, personal attention and work ethic of a Midwestern firm. McGrath North was founded in Omaha in 1959, and has grown into one of the Midwest’s largest and most reputable firms. Our success is a direct result of the expertise we have developed while representing a broad client base, and where our focus is providing clients with practical advice and exceptional results. Our experience and proficiency have made McGrath North the firm of choice for clients in Nebraska, the Midwest and beyond.
In an effort to provide our clients with the best possible service, we have grown our firm to include a wide range of practice areas and industries. In addition, our attorneys coordinate efforts across practice areas to ensure that our clients receive the most practical and effective legal services. Our dedication to our clients has earned McGrath North firm-wide recognition from third party sources such as Best Lawyers® and Chambers USA. We are also proud to have forty (40) of our attorneys individually recognized by Best Lawyers® and thirty three (33) of our attorneys individually recognized by Super Lawyers.
We innovate, expand and adapt our services to meet our clients’ ever changing needs. We are proud of the firm that we have built, the clients that we serve and the results that we provide. Welcome to McGrath North.
About Cogent Valuation
Cogent Valuation is a nationally recognized firm that has provided independent valuation and financial advisory opinions in thousands of situations since 1991. Cogent Valuation provides securities valuation and corporate advisory services to parties requiring an expert’s opinion on pricing, structure, fairness or solvency in connection with the following matters: mergers and acquisitions, buyouts, employee stock ownership plans, partnerships, gift and estate and other tax situations, recapitalizations, corporate finance, litigation support, intangible assets, and fraudulent transfers. Over the years, the firm has been retained by public and private corporations (large and small); financial institutions; fiduciaries; government agencies; boards of directors; attorneys; accountants and stockholders.