In addition to the structuring and implementation of ESOPs for our clients, Axiom provides ESOP valuation services in accordance with the current regulatory environment. According to the Department of Labor, any company participating in an ESOP is required to complete an independent company valuation to determine the respective per share price and overall ESOP value.
It is important to seek valuation services from a trusted appraiser like Axiom with a working and current knowledge of ESOP valuation issues and an understanding of the current market trends, multiples, and cost of capital to provide a market-relevant valuation of your ESOP.
Important issues to be considered in determining an ESOP valuation include:
- Fair Market Value
- Control premiums
- Liquidity discounts
- Tax pass thru status
- Protection of the ESOP participants