New White Paper on Valuation Published by The ESOP Association

Issue Brief #27, A Framework for Understanding the Impact of Repurchase Obligation on Share Price, has been published by The ESOP Association. It was written by members of the Association’s Advisory Committee on Valuation. Special thanks to the members of the Committee and Committee Chair, Jim Ahern, Managing Director of ComStock Advisors of Wheaton, IL for their work on this project.

The Preamble:

The ESOP Association’s Advisory Committee on Valuation (“ACV”) of recently published Issue Brief No. 25, The Integrated Relationships of ESOP Repurchase Obligation and Valuation, to help further the discussion of the impact of repurchase obligation on the valuation of ESOP companies.  That White Paper stressed the importance for private companies to plan for and manage their ESOP repurchase obligation in the context of a retirement benefit, ownership structure, and demand for capital.  The ACV continues the discussion in this white paper by introducing the concept of opportunity cost.

Members of The ESOP Association can download a copy of the Issue Brief in the members only section of the website. Issue Briefs are free to Association members. Non-Members can purchase the Issue Brief online or by calling 202/293-2971.

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