ESOPs
An Employee Stock Ownership Plan (ESOP), when properly structured, has the ability to provide business owners and businesses with significant tax savings. An ESOP can also provide the company with enhanced cash flows along with an employee benefit plan that is directly linked to the company’s performance. A well structured ESOP can help attract and retain employees.
T&M prepares many ESOP valuations. Our firm’s professionals include members of the ESOP Association of America, and the National Center for Employee Ownership. We can provide ERISA and ESOP Trustees with accurate and defensible valuation conclusions that meet all applicable ERISA, Internal Revenue Service and Department of Labor regulations.
Fairness Opinions
Fairness opinions are professional valuation opinions provided by investment banks and valuation firms regarding the fairness of a price offered in a capital transaction, such as the purchase of stock by an ESOP, a merger of two companies or an acquisition. A fairness opinion by its nature is limited in its purpose. Its purpose is to assure board members and shareholders that the contemplated transaction is “fair” from a financial point of view. T&M has provided a number of fairness opinions in limited scope engagements in which it has participated as a valuation advisor. A fairness opinion is not a substitute for business judgment and scrutiny; it can provide a thoroughly independent point of view and opinion.
For more information on our ESOP practice, please contact Brooke Tucker.