Does Cutting Expenses Help Increase the Business Value of a Company?
Cutting expenses can potentially increase the value of a company, but it depends on the specific circumstances and the approach taken to reduce expenses. Here are some factors to consider: Impact on profitabilityReducing expenses can improve profitability, which is a...
How do you use KPIs in an ESOP?
Key Performance Indicators (KPIs) can be an effective tool for measuring and monitoring the success of an Employee Stock Ownership Plan (ESOP). Here are some steps to effectively use KPIs in an ESOP: Identify relevant KPIs: Identify the specific KPIs that are most...
Why are Two Heads Better Than One in Business?
The saying "two heads are better than one" suggests that working collaboratively with others can lead to better outcomes and more effective problem-solving than working alone. In a business context, there are several reasons why two heads (or more) can be better than...
Are New ESOP Regulations Something to Celebrate?
Recently, the Department of Labor (DOL) committed to a regulatory process to develop new guidelines for ESOP valuations https://www.nceo.org/employee-ownership-blog/dol-commits-regulatory-process-esop-valuation-guidelines. This development has important...
The Right Customers Can Increase Business Value
You may know that the quality of your employees can greatly impact the value of your business, but are you aware how your customers are affecting your profitability? It is important for businesses to identify customers who may be challenging to work with or who may...
Determining the Share Value of an ESOP Company
As a trustee of an ESOP company, it is important to understand the primary drivers of value. We call them People, Processes, Profits. While simple, if you always keep these factors in mind, it will help you make informed decisions on correctly pricing annual shares....
NCEO 2023 Annual Employee Ownership Conference
The Art of Business Valuation is pleased to be sponsoring the NCEO 2023 Annual Conference. NCEO is a leading ESOP Association that promotes, educates, and protects ESOP Companies and their employee-owners. Join me and 2,000 employee-owners who are passionate...
Seven Steps for a Trustee to Review an ESOP Business Valuation / Appraisal
One of the most important roles the Employee Stock Ownership Plan (ESOP) Trustee has is to determine the stock price for the ESOP plan at the time of the initial transaction and then again each year. This is a fiduciary decision that must be made with care and...
SBA 7(a) Loans For ESOPs?
In 2018 the Main Street Employee Ownership Act (MSEOA) was passed. It was thought the MSEOA would allow companies to get an SBA 7(a) loan for an ESOP transition. Unfortunately, the SBA requirements to secure the 7(a) loan for an ESOP transition made it unlikely that...
Selecting an ESOP Business Valuator
Employee Stock Ownership Plans, better known as ESOPs, are required to have a compliant opinion of business value each year to assist the ESOP trustee in determining the share value for distributions and purchases of beneficiary stock. The trustee has the fiduciary...