Dedicated ESOP Professionals
With the acquisition of Acuity Advisors, we have a team dedicated to ESOP formation and consultation. Our ESOP valuation experts provide an integrated array of services through the various stages of ESOP planning, execution, and administration, including:
Transaction Opinions
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Adequate Consideration Opinions
ESOP Valuations
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Initial ESOP formation valuations
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Annual enterprise and equity valuations, valuation review and consulting
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Shareholder and ERISA dispute resolution and litigation support
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Valuations of businesses, divisions, equipment, and real estate for financing purposes
- ESOP sale valuations
Compliance
Our ESOP valuations are compliant with our understanding of standards set by the US Department of Labor (DOL), the US Internal Revenue Service, the Uniform Standard of Professional Appraisal Practices (USPAP), and the American Society of Appraisers (ASA) as well as the best practices outlined in the 2014 DOL Settlement Agreement with GreatBanc Trust Co., often referred to as “Paragraph D.”
For an understanding of concerns over the valuation of ESOPs, please see the following DOL caselaw:
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First Bankers Trust Services and Sonnax (2016)
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First Bankers Trust Services and SJP Group (2017)
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First Bankers Trust Services and Marian (2107)
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Constellis ESOP v. Wilmington Trust (2017)
- Reliance Trust and Tobacco Rag Processors (2017)
ESOP Experience
Our ESOP experience includes valuation of companies in a broad range of industries and size of business.
We employ our knowledge of the appropriate regulatory guidance to provide the complete scope of work and report expected by ESOP trustees, counsel, audit firms, and regulators.
For more information about ESOP or other valuation services, see the links to the right or contact one of our expert professionals.
How Marshall & Stevens can help with ESOP Valuations
Our ESOP Valuation team collaborates with our internal multi-disciplinary professionals to provide the value analyses and fresh independent opinions to fiduciaries, financing sources and investors for public and private company transactions.
MS Investment Banking
MS Capital works with entrepreneurs to assist them with succession planning and liquidity events. Our team works closely with shareholders and company management to review current performance, provide business and asset
Fairness Opinions
A Fairness Opinion from a disinterested valuation firm provides decision makers with an independent analysis of the transaction, unbiased by commissions and other potential conflicts.
Solvency Opinions
A common myth is that when two parties are dealing at arm’s length there is no such thing as “too good of a deal.” This view ignores the laws relating to solvency.
Frequently Asked Questions
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Marshall & Stevens has a large team of valuation professionals, all of which have industries where they have a particular expertise, including: agriculture, automotive, chemical, construction and engineering, consumer products, energy and infrastructure, entertainment and media, food and beverage, healthcare, hospitality and gaming, manufacturing and distribution, real estate, professional services, technology.
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The IRS expects that gifts of equity in a business or operating asset (i.e. real estate) be performed by a “qualified appraiser” as defined by the IRS.
Reporting a value to the IRS that is below the IRS’ opinion of fair market value may lead to additional taxes and penalties on the transaction.
A fractional interest in a business is not typically equal to the respective percentage in the total value. Matters of control in the business and marketability of the equity often leads to a material discount from the pro rata value.
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Marshall & Stevens performs real estate appraisals for financing, estate and gift tax planning and reporting, buy/sell consideration, insurance, easements, property tax, and litigation.
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The accelerated depreciation benefits from a cost segregation analysis on acquired real estate (or improvements for leased space) can typically pay for a material percentage of the transaction costs and/or multiple financing payments.
The Marshall & Stevens Difference
Marshall & Stevens provides Fairness and Solvency Opinions, valuation analyses, investigative accounting, and expert witness services to assist public and private clients with their important transactions and litigation matters.
Client Highlights
Here are a few client success stories from
ESOP Valuation Contacts at Marshall & Stevens
Chris Kramer leads the ESOP Practice and Orange County, CA office. He provides transaction advisory, Fairness and Solvency Opinions, and valuation analyses.
Patrick Schmidt built and leads the Minnesota office and is an ESOP specialist. He performs valuations of businesses for buy/sell consideration, estate & gift tax, and litigation support.
Steve Susel is a transaction advisory specialist, working with business owners, fiduciaries, and advisors with succession planning including ESOPs.
Chase Hoover is a succession planning advisory responsible for transaction advisory including Fairness and Solvency Opinions, ESOP formations, and business valuation.
Relevant Insights
Marshall & Stevens Acquires Sixth Valuation Firm, Acuity Advisors
ESOPs: Best Practices and Benefits
