Valuation Discounts in ESOPs

A commonly distressing experience for owners in a company with an employee stock ownership plan (ESOP) is that the price of the business as a whole is not the price the ESOP will actually pay.

Where Did Employee Ownership Month Come From?

Back in 1982, the National Center for Employee Ownership was in its second year. Our staff consisted of three people: Karen Young, myself, and an intern, Mike Yoffee. We thought it would be a good idea to have an employee ownership week.

Working at an ESOP

Considering a job at an ESOP company? Here are some things you should know.

ESOP Valuations: Uncertain Forecasts, Incorrect Earnings Reports, and ESOP Valuation

ESOP valuations rely heavily on forecasts and earnings reports. Appraisers try to correct for uncertainty by assessing the risk of a company not meetings its expectations, but the process is inherently uncertain. While forecasts predict the future, earnings reports are supposed to indicate what actually happened. Unfortunately, sometimes errors are found after the valuation has already been done. So now what? These questions came up recently in our inbox. Here is what we said.
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Cases & Rulings: February 2024

Ninth Circuit Again Denies Rehearing Motion for DOL to Repay Attorneys’ Fees in Bowers and Kubota Case
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Cases & Rulings: July 2022

Seventy Seven Energy 401(k) Stock Drop Case Settled: In Snider v. Administrative Committee Seventy Seven Energy Retirement Plan, Cov29-977-D (W.D.
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