Becoming an S Corporation ESOP

This webinar is for S corporations that are thinking of setting up an ESOP and C corporation ESOP companies thinking of switching to S status. It will review basic S ESOP corporation rules, how S and C ESOP tax incentives differ, using S distributions, issues on converting from C to S, and basic valuation and administrative concerns. We will discuss:
Member-Only Content. Login or Join to View.

Collateral Payments in ESOP Transactions

This webinar will explore the theories advanced in legal cases, potential defenses to such claims, how courts have handled these claims in recent cases, and considerations for structuring these types of payments to mitigate risk.

Communicating Financials and Valuation to Your Participants

In many companies, the valuation process is a black box—failure to understand valuation blocks the line of sight between employees' day-to-day activity and the value of their ESOP accounts. In order to tap the power of their ESOPs, companies need people to have a basic understanding of how valuation works and what aspects of the value employees can affect.
Member-Only Content. Login or Join to View.

S Corporation ESOPs: Valuation Issues

ESOP fiduciaries and others responsible for the annual ESOP appraisal need to understand the interaction between their companies' S corporation statement and the valuation. The benefits of being an S corporation ESOP add several layers of complexity to the annual valuation. For example, ESOP shares are valued by law at the price a "willing buyer" would pay, but there is no guarantee that this hypothetical willing buyer would be an S corporation or have an ESOP. Does that make it impossible for the appraisal firm to consider the S corporation ESOP tax shield? If not, how should it affect the annual valuation? Does the appropriate valuation method change for initial transactions, ongoing operation, or in evaluating a potential sale of the company? What's the difference between valuation for a 100% ESOP-owned S corporation and one where the ESOP has a smaller stake? This webinar stands on its own, but many attendees will also view our other two S corporation webinars (one on legal issues and one on administrative issues)
Member-Only Content. Login or Join to View.

S Corporation ESOPs: Valuation Issues

ESOP fiduciaries and others responsible for the annual ESOP appraisal need to understand the interaction between their companies' S corporation statement and the valuation. The benefits of being an S corporation ESOP add several layers of complexity to the annual valuation. For example, ESOP shares are valued by law at the price a "willing buyer" would pay, but there is no guarantee that this hypothetical willing buyer would be an S corporation or have an ESOP. Does that make it impossible for the appraisal firm to consider the S corporation ESOP tax shield? If not, how should it affect the annual valuation? Does the appropriate valuation method change for initial transactions, ongoing operation, or in evaluating a potential sale of the company? What's the difference between valuation for a 100% ESOP-owned S corporation and one where the ESOP has a smaller stake?