Employee Stock Ownership Plans: Key Valuation Decisions

Description

Valuation specialists and ESOP administrator clients wrestle with a number of thorny valuation decisions that arise under Internal Revenue Code Sect. 4975, Department of Labor regulations, and FASB guidance — all of which leave room for interpretation. The accounting implications are significant.

What is the proper marketability discount on shares held by an ESOP, compared against pricing in general markets? What are the balance sheet ramifications with dollar-for-dollar reductions in valuations when ESOPs take on loans? How will continuing market struggles impact ESOP valuations?

For these and difficult ESOP valuation issues, practical guidance and experiences from peers are critical to analyzing all alternatives and making a well informed decision.

Listen as our panel of valuation and accounting veterans addresses ongoing and complex valuation challenges involving ESOP shares and other financial statement items.

Outline

1. Sources of relevant guidance on ESOP valuations
   1. IRC Sect. 4975
   2. U.S. Labor Department regs
   3. In some areas, FASB guidance
2. Practical difficulties in ESOP valuation decisions
   1. Marketability discounts
   2. Loans taken out by ESOPs
   3. Valuation challenges in response to general market downturns and risk levels
   4. Other special challenges with ESOPs
3. Key inputs into valuation decisions, and alternative approaches

Benefits

The panel will arm you to make better valuation decisions in these and other relevant areas:

• Marketability discounts: What valuation discount or discount range is too low or too high, given general market conditions and discounts taken by private companies?
• ESOP loans: Is there a viable alternative to reducing valuations in the full amount of a loan?
• Applicable guidance: How are Sect. 4975, Labor Department regs and FASB guidance on-point in making a sound valuation decision — and how are they lacking?

Upon completing this seminar, an attendee will be exposed to additional approaches and best practices to making accurate valuation decisions when it comes to shares controlled by an employee stock ownership plan, or ESOP.

Webinar/Teleconference

Strafford webinars/teleconferences offer several options for participation: online viewing of speaker-controlled PowerPoint presentations with audio via computer speakers or via phone; or audio only via telephone (download speaker handouts prior to the program).  Please note that our webinars do not feature videos of the presenters.

NASBA CPE Sponsor

Strafford is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN, 37219-2417 or by visiting www.nasba.org.

CPE Credit

Strafford is a NASBA CPE sponsor and our live seminars qualify for CPE credits. They offer you a high quality, cost effective, and convenient CPE option, with no lost travel time or expenses.