ESOP’s and Business Valuation
Harvest is a Princeton, New Jersey and Columbia, Maryland based business valuation and business intermediary firm specializing in ESOP, SBA, litigation, and state and IRS gift tax business valuations.
The Employee Retirement Income Security Act otherwise known as ERISA requires preparation of an annual valuation of the employer corporation equity for existing Employee Stock Ownership Plans (ESOP’s).
Additionally, a valuation will normally be prepared in conjunction with:
- ESOP formations
- Leveraged ESOP financing
- ESOP employer corporation recapitalization transactions
- Purchase or sale of ESOP-owned employer stock
- Purchase or sale of the entire employer corporation
- ESOP terminations
The purpose of the valuation is to provide the trustee with guidance so he can fulfill in his fiduciary duty to ensure that the Trust Beneficiaries, namely the employees in the plan receive fair value when buying and selling their stock.