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DOL ALLEGES NEGLIGENCE IN MONITORING ESOP TRUSTEE IN M&A DEAL

Learn about a recent M&A case involving a Hawaii-based architectural engineering firm and the Department of Labor’s allegations of negligence in monitoring the ESOP trustee’s actions. Understand the importance of using an independent ESOP trustee to mitigate liability risks. Read

Posted in director liability, independent trustee, prudence, sale of business to ESOP Tagged with: , , , , , , , , , , , , ,

DOL Sues Target Directors Over ESOP Transaction

Read about the recent case where the Department of Labor (DOL) filed a lawsuit against ESOP company directors for alleged breach of fiduciary duties. Gain insights into the implications of appointing an independent ESOP trustee and ensuring fairness to ESOP

Posted in director liability, independent trustee, sale of business to ESOP Tagged with: , , , , , , , , ,

ESOP Bank Trustee and Owner Ordered to Repay $6.5 Million Overpayment in Purchase Price

Explore a case study where ESOP owners and a bank trustee were sued for an overpriced transaction, resulting in a $6.5 million repayment order. Learn key takeaways for successful ESOP deals. November 18, 2019 Introduction: Selling a business to an

Posted in capitalization of cash flow, discounted cash flow or DCF, independent trustee, projections, prudence, sale of business to ESOP, valuation Tagged with: , , , , , , , , ,

Court may unwind owner sale of company to ESOP because price too high

Company is a Hawaii architectural firm. On April 27, 2018, the U.S. Department of Labor filed a lawsuit in a Hawaii federal district court alleging that ESOP Trustee and Owners caused the Company‚Äôs ESOP to purchase the Company’s shares from

Posted in sale of business to ESOP Tagged with: , , ,

Utah case is a lesson for selling your stock to an ESOP

This is the story of Dale and Julie, husband and wife, who owned a Utah company that was started in 1952 and sold and implemented computer products. As an exit strategy Dale and Julie established a company ESOP. From 2007

Posted in sale of business to ESOP

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