A recent article in the New York Times extols the virtues of employee ownership through employee stock ownership plans (ESOPs). And trade groups for employee-owned businesses have noted bipartisan Congressional support for ESOPs. But ESOP experts (trustees and appraisers) worry that the Department of Labor’s antagonistic attitude toward ESOP transactions, validated by key victories in court, has stymied ESOP formation. Read more >>

One of the most controversial ESOP cases, Brundle v. Wilmington Trust, has now entered the appeals court phase. In 2017, the district court found that the trustee had caused the plan to overpay by $29.8 million by failing to scrutinize the financial advisor’s obviously flawed valuation analysis and value conclusions. The trustee and valuator had strong ESOP credentials. Read more >>

A casual observer may look at the various business valuation standards different organizations issue and get the idea that they are at odds with each other. But that is not the case. Read more >>

New fair value regulations and the Mandatory Performance Framework (MPF) apply to everyone, not just holders of the new CEIV credential. Read more >>

The Treasury has released long-awaited proposed IRC Section 2704 regulations designed to curb estate valuation discounts. It appears that the proposed regulations eliminate almost all minority discounts for closely held entity interests, including operating businesses owned by a family. The proposed regs have triggered a strong response from the valuation community, legal profession, and others. Read more >>

You now have until August 24 to comment on two important exposure drafts that relate to the ongoing fair value quality initiative (FVQI) designed to improve financial reporting valuations for U.S. publicly traded companies. Read more >>