BV News and Trends December 2024
A monthly roundup of key developments of interest to business valuation experts.
DOL to ‘heat up’ regs for ESOP valuations
Long-awaited regs from the Department of Labor on ESOP valuations are a “forthcoming attraction that will heat up a fair amount of our resources for the fall,” said Jeff Turner, acting deputy director of the Office of Regulations and Interpretations at the Employee Benefits Security Administration (EBSA), reports the American Society of Pension Professionals & Actuaries (ASPPA).
BV News and Trends October 2024
A monthly roundup of key developments of interest to business valuation experts.
BV News and Trends September 2024
A monthly roundup of key developments of interest to business valuation experts.
ESOP Experts Worried Over Upcoming DOL Regs on Valuations
At the recent ASA ESOP Virtual Conference, a panel talked with some concern about upcoming proposed regulations from the Department of Labor on how to establish the fair market value of shares of a business to be acquired by an ESOP. They urged the audience to make their voices heard when the comment period opens (no word yet) and talked about recourse strategies if the final regs are problematic.
DOL prevails in ESOP valuation lawsuit
The former owners of the company behind those ubiquitous Cruise America RVs must not be happy campers after a recent ruling from an Arizona court. The court found that they violated ERISA and breached their fiduciary duties when setting up an ESOP that the DOL said overpaid them for their shares.
Senators to DOL: Get moving on ESOP valuation rule
U.S. Senator Roger Marshall (R-KS) led a bipartisan letter calling on the U.S. Department of Labor (DOL) to complete a final regulation governing the “adequate consideration” exemption for employee stock ownership plans (ESOPs).
Reminder: Email your senator regarding DOL’s ESOP valuation rule
Regardless of whether your practice involves ESOP valuations, you will want to consider a request from The ESOP Association (TEA) to email your senator about signing a bipartisan letter being sent to the Department of Labor (DOL) about an important valuation rule.
Action needed! Email your senator re: DOL’s ESOP valuation rule
Regardless of whether your practice involves ESOP valuations, you will want to consider a request from The ESOP Association (TEA) to email your senator about signing a bipartisan letter being sent to the Department of Labor (DOL) about an important valuation rule.
DOL’s ESOP valuation slammed in amicus briefs to SCOTUS
The American Society of Appraisers (ASA) and The ESOP Association (TEA) have filed amicus briefs with the U.S. Supreme Court related to the Bowers ESOP case in support of the petitioners’ attempt to recover attorneys’ fees and costs from the government.
ESOP experts anxious about upcoming DOL regs
A panel at the ASA ESOP Virtual Conference last week was clearly concerned over proposed rules the DOL is expected to issue on how to establish fair market value for shares of a business to be acquired by an ESOP, i.e., “adequate consideration.”
BV News and Trends April 2024
A monthly roundup of key developments of interest to business valuation experts.
Still waiting for the DOL ESOP regs
First, they were expected at the end of 2023, then the end of March 2024, but there is no sign yet (at the time of this writing) of the proposed regulations regarding ESOP valuations.
ESOP group drafts rule framework for DOL valuation regs
In advance of the Department of Labor issuing its proposed final regulations related to ESOP valuations, the ESOP Association has drafted a “proposed regulatory framework,” according to the group’s blog post.
BV News and Trends January 2024
A monthly roundup of key developments of interest to business valuation experts.
Time to Engage Over Upcoming ESOP Valuation Rules
Some examples of how the valuation profession has worked with regulators in the past may help inform interactions with the Department of Labor (DOL), which will soon issue regulations regarding ESOP valuations.
BV News and Trends December 2023
A monthly roundup of key developments of interest to business valuation experts.
BV News and Trends November 2023
A monthly roundup of key developments of interest to business valuation experts.
Don’t hold your breath over the DOL valuation regs, some say
While in Las Vegas, BVWire stopped in at the ESOP Association’s Employee Owned Conference, billed as the largest ESOP conference in the world.
Regulatory uncertainty regarding ESOP valuation is a major problem
The regulatory uncertainty around valuations for employee stock ownership plans (ESOPs) is a significant burden that creates undue risk and can “hamper employee-owned businesses,” says Alex Brill, a senior research fellow at the American Enterprise Institute, in a new paper.
DOL ESOP valuation regs coming by year-end
The Department of Labor (DOL) will issue long-awaited guidance on ESOP valuations by the end of this year, according to a blog post from the National Center for Employee Ownership (NCEO).
Takeaways From ASA’s ESOP Virtual Conference
ESOP valuation basics, sell-side transactions, issues with mature ESOPs, and common critiques with valuations in litigation were the topics of discussion at ASA ESOP Virtual Conference.
Valuation Implications of the Changing ESOP Litigation Landscape
The tide has started to turn with respect to litigation over ESOP valuations, speakers reported at the recent ASA ESOP Virtual Conference. There has been a major court victory and pressure from the ESOP and valuation profession, and now the DOL has committed to moving forward—hopefully— with long-awaited regulations on the valuation of company shares to be bought by an ESOP.
Pereira method used for marital interest in construction firm
In a Nevada divorce case, the court considered whether the valuation of the marital portion of a separate property business should be calculated under the Pereira or Van Camp approach.
BV News and Trends June 2023
A monthly roundup of key developments of interest to business valuation experts.
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