We will examine several aspects of ESOP valuation and leveraged transaction structure that frequently come under DOL scrutiny. These include items such as warrants, SARs, application of control premiums, terminal multiples, repurchase liability, and special considerations for second-stage ESOP transactions. We will explain what all of these concepts are, and we promise to do so in a way that is useful and understandable. When you are finished with this session, you will have a much better understanding of (1) why these items are scrutinized, and (2) how you should respond if your ESOP is challenged on these issues. NCEO Resource: Lessons from Recent ESOP Litigation
Learning Objectives:
Understand why warrants and SARs are utilized in tandem with an ESOP and when they should or should not impact the ESOP valuation
Identify many frequently encountered facets of ESOP valuation
Learn how to better respond to DOL audits and inquiries over aspects of ESOP valuation and leveraged transaction structure
