Transcript ESOP Buyout

DOL’S FIDUCIARY PROCESS AGREEMENT
Professional Fiduciary Services LLC
Enterprise Services, Inc.
Changes in the Fiduciary Process
2

No Moench Presumption
 Non-litigation

impacts
Regulation by Settlement Agreement
 Transactional
and Ongoing Impacts
 Changes in Valuation Reports

Financial Advisors and Fiduciary Standards
 Is
my Broker a Fiduciary?
No Moenchy Business
3

Criteria to hold or divest company stock
 Benchmarking
performance
 Capping allocations to company stock
 Should the plan say it is designed to invest in company
stock?
 Do the fiduciaries document the hold versus sell
decision?
Sierra Aluminum Settlement
4






Independent valuation firms
Audited financial statements
Assessing management projections
Control premiums
Claw backs and warrants
Seller financing
Financial Advice to ERISA Plans
5

Traditional Broker Standard
 Suitability

RIA standard
 Fiduciary

– meets risk / reward objectives
– best interests
DOL proposes a fiduciary standard for those who
advise retirement vehicles.
Professional Fiduciary Services LLC
1841 N Riverwalk Way
Milwaukee WI 53212
262.627.0366
[email protected]
Enterprise Services, Inc.
355 Austin Circle
Delafield, WI 53018
262.646.6490
[email protected]
Mickey Maier is a President of Professional Fiduciary
Services LLC in Milwaukee WI. He serves as an
independent transactional fiduciary, ongoing trustee,
or board member for a number of ESOP companies.
Craig Olinger is a Principal at Enterprise Services, Inc.
(ESI), a firm focused on providing consulting services for
private business. He specializes in working with business
owners and advisors on ESOP valuations.