Tim Lee, Managing Director of Mercer Capital, contributed chapter 2, “Control in ESOP Valuations” to the new book The Fiduciary’s Guide to ESOP Valuation published by The National Center for Employee Ownership. The book can be purchased through the NCEO’s website.
A short description of the book can be found below:
Valuations are central to the ESOP process. This innovative book has been written primarily for inside ESOP trustees, company leaders, and board members. The core of this book is chapter 1, “How Your Appraisal Report Works,” an actual redacted valuation report that has been annotated with explanatory comments. Subsequent chapters discuss how control premiums or discounts are calculated, reviewing the valuation (taught in a Q&A format), how to communicate valuation to employees, and how to select an appraiser. An appendix has a useful checklist for reviewing the appraisal report.
The goal of this book is to help people who need to read and use valuation reports understand what is in them and how to use them. Board members, executives, and especially fiduciaries need to understand the valuation process well, know how to spot red flags and problems, and know how the report can tell them about how the company’s value might be improved.
Mercer Capital understands ESOPs because we are an ESOP-owned firm. We provide annual appraisals for ESOP trustees, as well as fairness opinions and other valuation-related services for ESOP companies and financial institutions across the nation.