Client Challenge
A 100% ESOP-owned construction services company needed an independent annual valuation to fulfill Department of Labor (DOL) requirements and trustee fiduciary duties. The company sought not only compliance, but also a valuation partner that could help interpret financial trends and support long-term value creation for employee-owners.
Our Role
FairValue Advisors was engaged to perform a fair market valuation of the company’s equity as of year-end. We collaborated directly with management and the ESOP trustee, analyzing historical performance, economic trends, customer concentration risk, and industry benchmarks. We also provided guidance on cash flow adjustments and normalized earnings to reflect ongoing operations.
The Result
The resulting valuation met ERISA and DOL requirements while giving the trustee confidence in the fairness of the share price. Our insights into operational drivers and capital structure supported informed decisions on repurchase obligations and shareholder communications.
