[et_pb_section fb_built=”1″ _builder_version=”4.16″ global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_row _builder_version=”4.18.0″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” width=”100%” custom_padding=”0px||0px||false|false” sticky_enabled=”0″][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||” theme_builder_area=”post_content”][et_pb_text _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}” theme_builder_area=”post_content”]No case is clear cut, but lessons often can be learned.\u00a0 In the recently filed action, the Department of Labor v PBI Bank, Inc. and The Miller\u2019s Health Systems, Inc. Employee Stock Ownership Plan (United States District Court for the Northern District of Indiana, Civil Action: 3:13CV1400), some, but not all, of the issues surrounded the valuation report.<\/p>\n
In this initial ESOP transaction, multiple drafts of a valuation report were produced.\u00a0 The ultimate valuation, according to the Department of Labor\u2019s filing, failed to consider several items.<\/p>\n
Note that all of the above statements are based on our interpretation of the Department of Labor\u2019s filing, not on a final Court decision. The \u2018lesson learned\u2019 here is to ensure the valuation analyst knows the intricacies of an ESOP, particularly with the initial valuation.\u00a0 At our firm, we review all important company resolutions and agreements, those directly associated with the ESOP and those created contemporaneously with the ESOP transaction. \u00a0We look at the financing arrangements.\u00a0 We discuss all of items these with the Plan Administrator, the Trustee and company management.<\/p>\n We don\u2019t opine unless we\u2019re satisfied the final opinion is reasonable, fair to all parties, and, most importantly, can be supported. A DOL auditor recently remarked to a client our work product was among the most thoroughly documented he had reviewed.[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" No case is clear cut, but lessons often can be learned.\u00a0 In the recently filed action, the Department of Labor v PBI Bank, Inc. and The Miller\u2019s Health Systems, Inc.<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"No case is clear cut, but lessons often can be learned.\u00a0 In the recently filed action, the Department of Labor v PBI Bank, Inc. and The Miller\u2019s Health Systems, Inc. Employee Stock Ownership Plan (United States District Court for the Northern District of Indiana, Civil Action: 3:13CV1400), some, but not all, of the issues surrounded the valuation report.\n\nIn this initial ESOP transaction, multiple drafts of a valuation report were produced.\u00a0 The ultimate valuation, according to the Department of Labor\u2019s filing, failed to consider several items.\n
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\nOther issues outside the valuation report trumped those mentioned above.<\/p>\n\n \t