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| Rollover as Business Start-Up (ROBS): Unlocking Retirement Funds for Your Business(2074Q) |
Course CPE: 1 hour
Field(s) of Study: Finance–1 hr
Program Level: Intermediate
Prerequisites: Previous training or research on subject matter being taught. Such persons are often at a mid-level within the organization, with operational and/or supervisory responsibilities.
Advanced Preparation: None
Delivery Method: QAS Self-Study |
Item
Number: 24BV0226AVWID
Shipping Weight: 0lbs. 0oz. |
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$99.00 |
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Recording Date: February 26, 2024
Presenter: Sam Phelps and Derrick Skogsberg
Program Description:
Unlocking Retirement Capital: What Business Valuation Experts Need to Know About ROBS Transactions
As a business valuation professional, understanding how entrepreneurial ventures are funded is essential to delivering accurate, credible, and defensible conclusions of value. One funding mechanism that continues to gain traction—but is often misunderstood—is the ROBS structure, or Rollover as Business Start-Up.
Our course, “ROBS: Unlocking Retirement Funds for Your Business,” is tailored specifically for valuation professionals who want to deepen their understanding of how this unique transaction works, its compliance requirements, and the implications it holds for valuation assignments.
ROBS allows entrepreneurs to use their retirement funds—typically from a 401(k) or traditional IRA—to capitalize a C Corporation that they will own and operate, without triggering income taxes or early withdrawal penalties. The mechanism relies on a qualified retirement plan purchasing stock in the operating company. But what appears on the surface as a simple funding strategy can quickly become complex and high-risk without the proper safeguards.
As a valuation professional, you may be engaged to appraise a business that was funded through a ROBS transaction. Understanding how to identify qualifying employer securities, ensure fair market value determination, and evaluate compliance risk becomes vital—especially in the context of equity held within a retirement trust. This course breaks down what happens before, during, and after the plan’s acquisition of stock and shows how improper implementation can expose both the owner and the business to significant IRS penalties and retroactive tax consequences.
You'll also gain insight into how the ROBS structure impacts ownership, financial reporting, corporate governance, and exit strategy. You'll leave equipped to ask the right questions, apply the right standards, and ensure your valuations reflect the regulatory and financial realities of this specialized funding approach.
Whether you're providing an initial valuation for SBA financing, supporting a potential transaction, or preparing for litigation, understanding the intricacies of ROBS funding adds a critical layer of professional competence.
Enroll today to sharpen your edge and confidently serve clients involved in this increasingly common form of capitalization.
After completing this course, you will be able to:
- Identify the core elements of a compliant ROBS transaction, including the use of a C Corporation and qualified retirement plan
- Recognize how improper ROBS implementation can affect valuation credibility and expose clients to regulatory risk
- Determine the appropriate approach to valuing employer securities held by a retirement trust in a ROBS-funded business
- Differentiate between qualified and non-qualified plan structures and their implications for ownership and control
- Identify red flags in financial statements or equity structure that may suggest plan noncompliance
- Select key questions to ask during a valuation engagement involving a ROBS-funded entity
- Recognize how equity proceeds from a business sale are handled when shares are held within the retirement plan
For more information regarding refund or concerns, please contact our offices at (800) 677-2009.
The Consultants’ Training Institute (CTI) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org. |
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