About the Webinar

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)

You will learn:

  • How to assess your current appraiser's valuation methods
    • How the large cash advantage of S corporations ESOPs may, (and may not) be reflected in the appraised fair market value
  • How to assess your current appraiser's valuation methods

 

There are no prerequisites or advanced preparation required for this introductory-level session.

Field of Study: Specialized Knowledge

Delivery Method: Group Internet Based

For more information on the types of Continuing Education Credit offered please visit Continuing Education Credits for Meeting and Webinar Attendees.

Presenter(s)

TJ has a diverse background including technical and project management skills from the banking and mortgage industries. He applies his financial, regulatory, and audit experience to assess businesses and conduct valuations, contributing to equity transactions and annual ESOP valuation reports. TJ holds the CVA (certified valuation analyst) designation from the National Association of Certified Valuators and Analysts.

Craig is managing director of ESI Equity. While assisting companies in achieving their business needs, Craig has completed assignments consisting of valuations for existing and prospective ESOPs, leveraged buyout analysis, sell-side advisory, fairness opinions, and synthetic compensation analysis. Craig consults on corporate governance and acquisitions and oversees ESI's business development and strategic planning. Craig possesses a range of management experience in business administration, and his years in the service industry extend across plant operations, sales, financial analysis, and customer relations.

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