employee stock ownership plans

The Tax Reform act of 1986 requires that a qualified independent business valuator provide a stock valuation upon the formation of an ESOP, and each year thereafter. The valuation must reflect consideration of leverage, control premium, minority interest and repurchase liabilities issues. ESOP valuations must conform to the Employee Retirement Income Security Act (ERISA 1974) and appropriate Department of Labor (DOL) regulations along with other industry standards as applicable to the engagement.