5 Traits To Look For In An ESOP Valuation Expert

  • Contributors:
  • Eric Larson
Image of ESOP Experts discussing the value they can bring to this team's organization if they hire them

High-quality relationships are key to success. In every facet of business and life. Even the valuation expert you hire for your employee stock ownership plan (ESOP).

How do you know if you’re working with the right valuation expert? What should you look for when hiring a new expert?

These are five things you should expect from your ESOP valuation provider.


1. Credentials

Any business valuation professional who’s doing ESOP work should have at least one certification that’s specific to performing business valuations.

If you’re looking for the best in the business, look for professionals with the Accredited Senior Appraiser (ASA) accreditation. It’s issued by the American Society of Appraisers and it’s the gold standard in business valuation.

When looking for an ESOP valuation expert, keep in mind that experts have different training and valuation experience.


2. Experience

An ESOP valuation is unique. It’s not like all other valuations. Therefore, you want to make sure your expert has plenty of experience with ESOP valuations.

He’ll know the nuances and points that differentiate an ESOP valuation from other valuations.

How might your expert use this experience to guide you through the process and ensure a fair valuation? Take the time to learn about your expert’s history with ESOP valuations.


3. Ability to translate complex information

A business valuation combines hundreds, even thousands, of data points into one clear analysis. This analysis is used by many audiences with various levels of comprehension.

In short – your valuation expert must be able to make the complex and confusing, simple. Is your expert able to do this? Can they give you examples?

This is critical to the ongoing success of your company’s ESOP.


4. Responsiveness

An ESOP valuation expert, like any good professional service provider, should be prompt and professional in their communication. At all times.

In the beginning, they can help set your expectations about the valuation process and communicate materials and documents they need to quickly and efficiently complete the valuation.

Along the way, they can monitor what’s needed, keep you updated of any progress, and clear any roadblocks that could delay the valuation.


5. Superior value

Choose an ESOP provider that can give you superior value. Ask how they do that. Make sure you know exactly what value they’ll bring to your business.

Think about the mix of service, price, expertise, and quality of the end product. Is it the best for your company? Ultimately, the choice is yours.


Keep each of these factors in mind when hiring a new ESOP valuation expert. Don’t settle for anyone that doesn’t satisfy each of these criteria. Why? Because your company is important.

The person you hire is someone you need to rely on for a qualified valuation and objective analysis and advice. You want someone you trust. Someone who does the job better than anyone else.


Have questions for our ESOP experts? Let’s talk!