The ESOP Valuation Process
by Wendy S. Ingalls, CPA/ABV, CBA, ASA and Nicholas J. Heinz, ASA
The establishment of an ESOP is a complex process. Valuation is one piece of the puzzle. This article details the steps necessary to prepare an appraisal to perhaps make the process less intimidating.
Excerpts from the new book,
A Reviewer’s Handbook to Business Valuation: Practical Guidance to the Use and Abuse of a Business Appraisal
Chapter 9: Valuation Discounts and Premiums
by Timothy R. Lee, ASA
This excerpt from Chapter 9 introduces the concept of valuation premiums and discounts, discusses the discount for lack of marketability (DLOM), and provides the reader sufficient context to understand that there are advantages and disadvantages pertaining to all DLOM methodologies.
Chapter 17: Alleged Errors of Omission by Appraisers
by Guest Contributor: L. Paul Hood, Jr., JD, LLM
This excerpt from Chapter 17 provides a few (of many) examples of potential errors of omission by appraisers, along with numerous case citations. As Paul points out, however, there are two sides to every story and sometimes the courts do not get it right.
Other Articles of Interest
About Mercer Capital
Mercer Capital is a full-service business valuation and financial advisory services firm. Valuation services are provided for estate and gift tax compliance matters, limited and general partnerships, employee stock ownership plans, profit sharing plans, buy-sell agreements, mergers and acquisitions, financial reporting valuation, and litigation support.
For more information, visit our website at www.mercercapital.com