ESOP Valuation Basics

Tuesday, August 2, 2016

10:00 a.m. Mountain time (MT)

Program Description

The aging of the baby boom generation has resulted in a large and increasing number of business owners considering ownership succession and liquidity alternatives. While many business owners will pursue traditional strategies such as a sale to a third-party, a management buyout, or leveraged recapitalization, for some business owners a sale to an employee stock ownership plan (ESOP) will be an attractive alternative. ESOPs impose a legal requirement that the subject company's stock be valued as of the date of the transaction and annually thereafter. In this five-part webinar series, you will learn ESOP basics, valuation, legal, accounting, and finance considerations from a group of the top ESOP professionals in the United States, concluding with a discussion of case studies.

This webinar will assist the audience in gaining a basic understanding of why the valuation of an ESOP-owned company is necessary and what the primary drivers of value are. The presenters will speak about the valuation process from the information gathering and due diligence phase to the application of generally accepted valuation methods (including a discussion of appropriate valuation premiums and discounts). The presenters will also touch on work product and the role of the ESOP trustee in the valuation process.

Learning Objectives

After completing this webinar, attendees will be able to:

Who Should Attend

CEOs, CFOs, CPAs, attorneys, financial advisors/planners, and commercial lenders

Presenter(s)

Aziz El-Tahch, CFA
Mr. Aziz El-Tahch is a managing director in the valuation & financial opinions group. His concentration is in employee stock ownership plans (ESOP) and ERISA advisory services. He has experience in the valuation of securities, intangible assets, and business interests for numerous purposes, including fairness and solvency opinions, mergers and acquisitions, corporate strategic planning, stock options and warrants, purchase price allocation, goodwill impairment testing, estate and gift taxation, shareholder disputes, and liability and damages analysis. He has extensive experience in the valuation of business ownership interests in ESOPs, and has performed analyses related to ESOP security formation and transactions, determination of transaction fairness, and adequate consideration and annual employer security valuation updates.

Among the many industries that Mr. El-Tahch has served are advertising, aerospace, agriculture, apparel, cable television, commercial printers, construction, engineering, financial services, furniture, government and defense contracting, healthcare, industrial machinery, insurance, internet retailing, metals, paper, packaging, pharmaceuticals, oil and gas services, paint, petroleum refining, restaurant, specialty chemicals, telecommunications and wholesale distribution, trucking, among others. Mr. El-Tahch has presented at numerous conferences and seminars on the subjects of valuation and transaction advisory services. He has also published articles on the use of ESOPs to facilitate business transitions and the valuation of intangible property in the context of transfer pricing analyses.

Prior to joining SRR, Mr. El-Tahch was a senior investment analyst at a New York-based alternative assets investment fund with approximately $500 million under management. At the fund, Mr. El-Tahch focused on credit card debt securitizations, collateralized debt obligation (CDO) and collateralized loan obligation (CLO) securities, and second-lien and mezzanine loans to middle-market companies. Among the industries that Mr. El-Tahch served are the regional banking and healthcare industries.

Mr. El-Tahch graduated magna cum laude, Phi Beta Kappa from Georgetown University’s Edmund A. Walsh School of Foreign Service with a concentration in economics. Mr. El-Tahch serves on the board of directors of Dynetics, Inc., a 100% ESOP-owned aerospace and defense company with approximately 1,400 employees. Mr. El-Tahch is a member of the CFA Institute, the ESOP Association (for which he serves as a member of the legal & regulatory committee and a former officer of the executive committee of the New York / New Jersey Chapter), the Employee-Owned S Corporations of America (ESCA), the New York Society of Security Analysts, the Association for Corporate Growth, and the National Center for Employee Ownership.

Brian DeMaagd, ASA
Mr. Brian DeMaagd, ASA is a director with Adamy Valuation.  Mr. DeMaagd has completed hundreds of engagements in connection with employee stock ownership plans, fairness opinions, shareholder transactions, management incentive plans, and estate taxation.  He has worked with private companies and professional practices in industries such as construction, engineering services, metal fabrication, building material distribution, automotive component manufacturing, and a vast variety of others.

His clients are located across the country and range from small professional service firms to large manufacturers approaching $1 billion in sales.  He has been with Adamy Valuation since 2004 and prior to joining the firm, Mr. DeMaagd worked in commercial banking and also as an investment research analyst at Prudential Securities. Additionally, Mr. DeMaagd served as the president of the Seidman Investment Portfolio Organization (IPO) for two years, while attending Grand Valley State University.

Mr. DeMaagd currently serves as the treasurer of the Michigan chapter of the ESOP Association.  He has held a chapter officer position for nearly eight years. Mr. DeMaagd is a frequent speaker at ESOP Association events and is active in planning semi-annual conferences for the ESOP Association.

He earned the Accredited Senior Appraiser (ASA) designation in 2010, granted by the American Society of Appraisers. 

CPE Credit

Program Level: Overview Prerequisites: None Advanced Preparation: None
Delivery Method: Group Internet-Based CPE Credits: One (1) Hour Fields of Study: Specialized Knowledge & Applications

Buy Now