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Valuations

Valuation Considerations During Times of Financial Uncertainty

Posted 1:30 PM by
As the country focuses its attention on COVID-19, and with most of the nation under strict “stay-at-home” orders allowing only essential businesses to operate, many private companies in a variety of industries are suffering the economic impact of the current public health crisis.
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How COVID-19 May Impact ESOP Valuations

Posted 7:00 PM by
ESOP employee-owned companies have a unique issue to consider during these challenging times: how does the COVID-19 pandemic impact ESOP valuation? Each company’s situation will be uniquely impacted by factors including the ESOP plan document, the valuation date, and the size of the ESOP stock distributions required for this plan year. For employees who help administer their ESOP plan or serve in a fiduciary role, the following observations about valuation and benefit plan concepts can help determine the best actions to take.
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ESOP Conference: The Valuation Advisor’s Due Diligence Process for Transactions and Annual Updates

Posted 3:30 PM by
Andy Manchir, director in Katz, Sapper & Miller’s ESOP and Valuation Services Groups, will present at the Indiana Chapter of the ESOP Association’s 2020 Spring Conference. Taking place March 5 at the Ritz Charles in Carmel, IN, the conference will bring together chapter members to discuss various topics related to ESOPs.
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What's Driving the Value of Your Trucking Company?

Posted 5:30 PM by
For any privately held company, the topic of valuation frequently resonates with its owner. There are numerous factors that impact the direction of valuations, and it is certainly a challenge to keep track of, let alone influence, the abundant drivers of value. In the last two years alone, company valuations have been positively impacted by tax reform and an overall rising stock market. Trucking company valuations have also been negatively impacted by certain industry trends: driver shortages, volatile fuel prices, and excess capacity.
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Partial ESOP Ownership as an Exit Strategy

Posted 1:15 PM by
According to the National Center for Employee Ownership (NCEO), the United States has over 6,600 Employee Stock Ownership Plans (ESOPs) with nearly $1.4 trillion in total assets. While ESOP companies are not required to report ownership percentages, the NCEO estimates that only 30% to 40% of those ESOPs are 100% employee-owned.
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Do You Know the Value of Your Transportation Company?

Posted 6:30 PM by
The transportation industry thrived in 2018. While signs point to some correction in 2019, the state of the market is currently strong, bank capital is readily available, and private equity firms are eager to get into the industry. These factors and more make this an appealing time for some owners to consider selling. Others are looking closely at growth opportunities such as investment in new technology and equipment.
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Business Valuation: Levels of Value and Unique Situations

Posted 12:30 PM by
Understanding the conclusions reached in a business valuation (BV) report requires a basic knowledge of the economic theory underpinning the generally accepted valuation approaches. Familiarity with the concept of levels of value will also aid in understanding the conclusions reached by a BV professional. By becoming familiar with the professional environment for BV services and combining that knowledge with a basic understanding of BV concepts, attorneys and their clients can critically evaluate the valuation conclusions reached in their reports.
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Manchir to Discuss ESOP Sustainability at 2018 Las Vegas ESOP Conference

Posted 2:30 PM by
Katz, Sapper & Miller’s Andy Manchir, director and co-chair of the firm’s ESOP Services Group, will present at the ESOP Association’s 2018 Las Vegas Conference & Trade Show. Taking place Nov. 8-9, the conference is the largest of its kind that is geared towards providing insight and discussion on the many facets of employee ownership. The event will feature more than 60 educational sessions, a trade show highlighting a variety of professional services, and provide many networking opportunities.
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Quality of Earnings Engagements Provide Confidence in ESOP Transactions

Posted 12:30 PM by
When an owner decides to sell his or her company to an Employee Stock Ownership Plan (ESOP) trust, one of the most impactful factors in the transaction is the company’s value. The ESOP trustee establishes the company’s value, which affects the total transaction price. It is vital that the price is as close to the company’s actual value as possible so the seller is compensated appropriately and the participants of the ESOP are not overpaying for the company.
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Valuing Closely Held Businesses: What You Need to Know

Posted 5:45 PM by
The valuation of closely held companies is a large and growing practice. However, most people are not aware of this valuation activity since the companies being valued are closely held and, thus, private in nature. Additionally, since closely held entities are typically smaller than publicly traded entities, fewer investors are affected by the results of such valuations.
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