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| Understanding ESOPs: Structure, Valuation, and Suitability (2272Q) |
Course CPE: 2 hours
Field(s) of Study: Business Management and Organization–2 hrs
Program Level: Basic
Prerequisites: Previous training or experience with the fundamentals of accounting, finance, economics, and business writing. These individuals are often at the staff or entry level in organizations, although such programs may also benefit a seasoned professional with limited exposure to the area.
Advanced Preparation: None
Delivery Method: QAS Self-Study |
Item
Number: 26BV0513UES
Shipping Weight: 0lbs. 0oz. |
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$147.00 |
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Recording Date: May 13, 2026
Presenter: Trisch Garthoeffner and Greg Caruso
Program Description:
Employee Stock Ownership Plans (ESOPs) have evolved from a novel employee-ownership concept in the mid-20th century into one of the more sophisticated succession and incentive tools available to privately held companies today. This course will explore the origins and legislative foundation of ESOPs, tracing their development from Louis Kelso’s initial ideas of broad-based capital ownership to the Employee Retirement Income Security Act of 1974 (ERISA), which formally recognized ESOPs as qualified retirement plans. Participants will review key milestones that shaped the ESOP landscape, including major tax incentives introduced in the 1980s and 1990s, and the more recent resurgence of ESOPs in both middle-market and professional service firms.
The course will also highlight how ESOPs have made headlines over the years, both for their successes in driving employee engagement and wealth creation and for the controversies surrounding valuation independence, repurchase obligations, and fiduciary oversight. Current regulatory issues will be discussed, including recent Department of Labor enforcement trends, evolving valuation guidance, and pending legislative proposals that could affect ESOP financing and compliance.
The course will focus on determining whether an ESOP may be a good fit for a particular client. Attendees will examine company characteristics, including size, profitability, capital structure, and cultural readiness, that make an ESOP either feasible or unsuitable. To bridge theory with practice, the course will review a redacted client valuation model, comparing a traditional valuation engagement with an ESOP valuation to illustrate unique analytical considerations such as the role of the trustee, the use of adequate consideration, and the impact of internal loan structures on value conclusions.
Finally, the course will address the costs, benefits, and risks associated with ESOP formation and ongoing administration, including appraisal expenses, repurchase liabilities, and fiduciary exposure. The course will conclude with an open discussion guided by participant questions, encouraging dialogue among valuation professionals, business owners, and advisors seeking to deepen their understanding of ESOP strategy and valuation practice.
After completing this course, you will be able to:
- Identify the origin of ESOPs and how they have evolved
- Recognize current regulatory developments, including the “why,” “when,” and from “who”
- Determine how these ongoing proposed regulations are affecting, or not affecting, real-world assignments
- Select considerations for incorporating employee ownership association concerns into an ESOP model
- Differentiate opportunities to expand client relationships, quality, and knowledge through the application of course concepts
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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