When potential acquirers express a serious interest that is hard to say no to, the next step is often to perform a due diligence assessment. That is a demanding and costly process for the CFO and other managers at an ESOP company.
Some outside trustees do not want board members to see the full valuation report. Their concern generally is that board members might be tempted to intervene in the appraisal. But ESOP boards are responsible for monitoring the trustee to make sure that the appraisal process is properly handled.
In recognition of their increased and successful efforts amid the coronavirus outbreak, President Trump praised a number of shipping and trucking companies, including Tennessee-based ESOP Big G Express.
Closely held ESOP companies will face the probability of declining stock value even if their business is holding up. ESOP valuation specialists tell us that the multiples they use to value businesses will drop to reflect the declining multiples paid for companies in general.
It is far from a scientific sample, but ESOP valuation advisors are generally telling us that their clients are doing about as well as or somewhat better than non-ESOP clients in terms of their stock values.
In Steinmen v. Hicks, C.D. Ill. No. 00-3260, 3/21/03), a U.S. District Court ruled that the trustees of an ESOP were not liable for losses in a profit sharing plan when it was terminated and merged into an ESOP.
Eight months after announcing the proposed transaction, Sam Zell has assumed control of the Tribune Company. An ESOP will own 100% of Tribune's shares and Zell will hold warrants convertible into a 40% stake in the company.
ESOP-owned Black & Veatch is announcing that it will be withdrawing from design, power, and construction that is reliant on coal. It will instead be putting resources toward renewable and sustainable forms of energy, with a goal of reducing its industry’s overall carbon footprint.
