ESOP Case Appeal Stokes Controversy Over DOL Valuations

Business Valuation UpdateVol. 26 No. 6
June 2020
ESOP valuations
discount for lack of control (DLOC), expert testimony, breach of fiduciary duty, fair market value (FMV), employee stock ownership plan (ESOP)


A series of court cases have generated controversy over the tactics and valuation methods the Department of Labor (DOL) has been using, including claims that the DOL has improperly redefined the term “fair market value,” does not follow generally accepted valuation principles nor standards, and continually uses an expert the valuation community deems “unqualified.”