If you funded your business through a Rollovers as Business Startups (ROBS) arrangement, your C corporation’s stock is owned in part by your retirement plan, and that plan needs an independent, defensible valuation of the company. This is one of the most specialized corners of business appraisal, and it happens to be one we know from both sides.
Why ROBS plans need valuations
A ROBS structure makes your 401(k) plan a shareholder of your company. ERISA and IRS rules require the plan’s assets, meaning your company stock, to be valued by a qualified independent source: at plan formation, annually for Form 5500 reporting, and whenever the plan buys or sells stock, including the buyback that unwinds the structure when you exit. A weak or self-prepared valuation is one of the most common compliance gaps in ROBS arrangements, and it’s exactly what an auditor looks for.
Why owners choose us for this
Beyond the appraisal credentials (BCA, CM&AP), our sister company, The SD Cooper Company, has specialized in ROBS plan design and administration for decades. That means your valuation is prepared by someone who understands the compliance context it must serve, not just the math. We speak Form 5500.
Straightforward pricing
ERSOP® plan valuations are $500 every year, exclusively for SD Cooper Company clients. ERSOP is the trademarked ROBS product exclusive to The SD Cooper Company, and its plan structure is one we know inside and out.
All other third-party ROBS valuations are $1,500, and staying current pays: keep your annual valuations consecutive and each renewal after the first is $1,000. Skip a year and the renewal returns to the regular $1,500.
What you receive
An independent valuation of your company’s stock suitable for plan administration: initial funding transactions, annual plan valuations, additional stock purchases, and exit or repurchase transactions. Reports are documented to stand behind your plan’s filings.
Common questions
How often do I need this?
Annually for plan reporting, plus at any stock transaction.
My ROBS provider offers a valuation. Why go independent?
Independence is the point. A valuation from a party with a stake in the structure invites the scrutiny it’s meant to prevent.
Can you value my company for the exit buyback?
Yes, and if you’re selling the whole business, the valuation and sale can be coordinated under one roof.
Keep your ROBS plan audit-ready. Set a Free Consultation
Jeff Kalil, BCA, CM&AP, CEPA — Business Certified Appraiser, Certified Merger & Acquisition Professional, Certified Exit Planning Advisor. Veteran-owned. Member: IBBA, M&A Source, AMAA, NACVA. Meet Jeff.