Need a Stock Valuation for a small ESOP sensitive to fees

[CharlesLeggette]

Does anyone know of a stock valuation person or firm that would perform a valuation for a 250 employee company for a reasonable fee....they are looking for a long term relationship.

[A Shot in the Dark]

Charles:

Fee sensitivity is arguably a good trait for ESOP Trustees, as long as quality is not compromised.

However, shopping for an appraisal based solely on fees is a a dangerous endeavor and I would not take part in it.

As an ESOP consultant, I truly believe there is no such thing as a reasonable fee in the appraisal world anymore. As a result of the vast amounts of litigation and the scrutiny given ESOP appraisals, appraisal fees have sky rocketed over the last few years.

Your client in looking for an appraisal firm should also make sure they retain the an appraisal firm that believes in the valuation methods used by the prior appraiser or be able to justify why it is willing to change the valuation methods. In a few ESOP audits, the Department of Labor has scrutinized the changing of appraisers.

Your clients best bet may very well be to an internet search for ESOP appraisers and seek proposals from two or three.