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…
Blog Archives
DOL ALLEGES NEGLIGENCE IN MONITORING ESOP TRUSTEE IN M&A DEAL
Posted in director liability, independent trustee, prudence, sale of business to ESOP Tagged with: Acquisition, Court decision, Department of Labor, Employee Stock Ownership Plan, ESOP Trustee, Fiduciary Duty, Independent Trustee, Legal Blog, Liability, M&A, M&A Transactions, Negligence, Stewart v. Saakvitne, Valuation
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…
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: bank trustee liability, business sale litigation, Employee Stock Ownership Plan, ESOP lawsuit, ESOP professionals, ESOP valuation, M&A legal case, overpricing, Pizzella v. Vinoskey, valuation methods
Court Challenges ESOP Purchase Price: Lessons for Business Owners
Explore a case study where an ESOP purchase price came under legal scrutiny. Learn valuable lessons for business owners considering Employee Stock Ownership Plans (ESOPs). M&A Stories February 7, 2019 In a notable case, the owners of a Hawaii architectural…
Posted in sale of business to ESOP Tagged with: Acosta v Saakvitne case, Business exit strategies, Business owner responsibilities, company projections must be reasonable, Court challenges in M&A, Department of Labor lawsuit, Employee Stock Ownership Plan, ESOP legal issues, ESOP valuation, Fair purchase price in ESOP, Fiduciary duties in M&A, Hiring ESOP lawyers, improper use of control premium, M&A case study, M&A legal blog, Protecting ESOP retirement assets, Trustworthy ESOP Trustees, Valuation report flaws
Recent Comments