Financial Valuation of Employee Stock Ownership Plan Shares  - CLEO Skip to main content


It is estimated that more than 20 million employees currently hold stock in their companies through a variety of benefit options, including employee stock ownership plans (ESOPs), broadly granted stock options, or 401(k) plans with heavy concentrations of employer stock. As more companies offer these valuable opportunities to employees, it is important for business appraisers, accountants, pension actuaries, Employee Retirement Income Security Act (ERISA) lawyers, and business leaders to understand both the implications of such processes and the valuation of companies with employee stock ownership plans.Financial Valuation of Employee Stock Ownership Plan Shares explains the unique considerations specific to the valuation of equity interests for ESOPs of private companies, including: * Entity structure * Tax incentives * Put rights * Repurchase obligations * ESOPs with debt * Adjustments for voting power and market liquidity for sharesFinancial Valuation of Employee Stock Ownership Plan Shares is a complete reference and research guide to valuation of transactions with stock incentives and ESOPs. It’s packed with useful and practical coverage of: * The ins and outs of ESOPs, including company and shareholder benefits of selling to an ESOP * Thorough descriptions of stock incentives and their attractiveness to employees * The nature and function of ERISA, Department of Labor, and IRS, including training material and Department of Labor–proposed regulations * The pros and cons of different methodologies and interpretations used in important court cases. Useful, complete, and thoroughly practical, Financial Valuation of Employee Stock Ownership Plan Shares provides business appraisers with the underlying logic, theory, laws, and principles for the financial valuation of private businesses.