Editorial Type:
Article Category: Research Article
| Online Publication Date: 01 Jan 2006
Effect of the ESOP Repurchase Obligation on Company Value
Effect of the ESOP Repurchase Obligation on Company Value
ASA, CFA and
CFA
Page Range: 115 – 120
This article explores the impact of the repurchase liability that arises as a result of implementing an ESOP and suggests how appraisers can handle the repurchase liability when a repurchase liability study has not been conducted. The impact on a sponsoring company's value due solely to the repurchase obligation ranged from 12% to 35% in our study.Abstract
Copyright: © 2006 American Society of Appraisers
Contributor Notes
Dennis H. Locke, ASA, CFA, is a Principal with Moss Adams LLP—Consulting Division
Wayne D. Fjeld, CFA, is a Manager in the Valuation Services Group (VSG) of Moss Adams LLP—Consulting Division. Moss Adams LLP is headquartered in Seattle, Washington.