ESOP Valuation

ESOP Services

South Park Advisors specializes in business valuations for Employee Stock Ownership Plans (ESOPs), a type of qualified retirement plan that buys and holds company stock for the benefit of employees. As an ownership transition strategy, ESOPs not only empower employees by providing an ownership stake in a business, but offer significant tax advantages and potentially improved cash flow for owners and their businesses.

At South Park Advisors, we’ll work with both trustees and the sponsoring company to ensure an ESOP is implemented and administered in the most professional manner, keeping in mind the framework of the Department of Labor (DOL) and the Internal Revenue Service (IRS). We’ll work with closely-held businesses throughout every stage of an ESOP life cycle. Whether you’re a business owner contemplating retirement, or an ESOP trustee responsible for the benefits plan of the employees you represent, we want to help.

South Park Advisors has the knowledge and experience to provide business valuation and advisory services to either business owners or trustees through various stages of an ESOP life cycle, from initial transactions, annual updates, second-stage transactions to plan terminations.

Transaction Advisory Services for Trustees

South Park Advisors’ principals have experience in transaction advisory and working with trustees in both initial transactions and later transactions.

We assist trustees in making a prudent investment decision when comes to buying or selling a sponsor company stock. Our well-documented and reasoned reports and analyses will help ensure that you understand the business valuation and the transaction parameters. South Park Advisors is centered around a high level of care and expertise throughout the entire valuation process. 

In an ESOP, a lot is at stake when a trustee is considering the financial merits of a transaction. A fairness opinion from a qualified business valuation professional may be necessary during an ESOP transaction. South Park Advisors will work to provide additional assurance to trustees that a proposed transaction is fair and reasonable from a financial point-of-view. 

Transaction Advisory Services for Business Owners

Our principals have experience assisting business owners with exit planning. A common avenue for selling an ownership interest in part or in whole is to an ESOP. South Park Advisors can help you understand the value that you have created and how an ESOP might help reach your goals. If an ESOP does makes sense, we can guide you through its implementation and advocate on your behalf. Our principals have an extensive network of ESOP professionals that can help implement the ESOP in an efficient and trustworthy manner.

Whether your goal is to gain some liquidity and diversification, exit on your desired timeframe, maintain the business’ legacy, or reward the employees that have helped you to build it, South Park can assist you in implementing an ESOP.

Annual Updates

South Park Advisors provides annual valuation updates to trustees. We believe there is no one-size-fits all approach, and every annual update is uniquely based on each business, sector and industry. We’ll work closely with management to gain a thorough understanding of the business and its financial and market conditions. The quality of our report will communicate it in a manner that is easily understandable to assist trustees in their determination of the annual share price.

Appraisal Review

While ESOP business valuation is a niche market, faulty, incorrect or poorly written and/or reasoned business valuations are far too prevalent. If you’re having issues with your existing business valuation, contemplating a change in advisors, or just looking for a second opinion, South Park Advisors can complete an analysis of existing report either as a written or oral report. An Appraisal Review requires not only identification of any problems, but also offers solutions. Don’t wait to have an Appraisal Review if you suspect a poorly written or improper valuation; compliance with the DOL and IRS are at stake.

Recent Podcasts

  1. ESOP 101 – What, Why and How? Click Link
  2. Non-Qualified Deferred Compensation and Warrants Click Link
  3. Business Valuation and Succession Planning Click Link
  4. Rob Hilton Joins South Park Advisors Click Link

All rights reserved South Park Advisors 2020