An ESOP is an incentive ownership arrangement funded by the employer. In general, employer stock is contributed instead of cash. ESOPs provide capital, liquidity, and certain tax advantages for private companies whose owners do not want to go public. An independent valuation analyst must value the employer's securities, at least annually, and must determine the price per share supporting transactions with participants, plan contributions, and allocations within the ESOP. Trugman Valuation Associates has performed valuations for ESOPs.