Employee Stock Purchase Plans (ESPPs) are one of the most powerful and accessible tools companies can offer for broad-based equity participation — allowing employees at every level to purchase company stock at a discount, often with the added advantage of a lookback provision that locks in a favorable price. In this article, The McLean Group breaks down how ESPPs are structured, how qualified Section 423 plans differ from non-qualified alternatives, the tax implications of qualifying versus disqualifying dispositions, and the strategic benefits ESPPs provide for employee engagement, retention, and competitive compensation. We also outline how our valuation and advisory team supports companies through every stage of ESPP implementation, from plan design and ASC 718 fair value analysis to financial reporting, dilution modeling, and building cohesive equity compensation frameworks that align workforce incentives with long-term shareholder value.

In the article “One Valuation Partner, Portfolio-Wide,” we explore why many private equity firms are consolidating valuation services with a single independent partner across their portfolio companies. As valuation increasingly serves as a core element of governance, financial reporting, and risk management, a unified approach can deliver significant advantages, including consistent methodologies, more efficient audit processes, improved portfolio-level benchmarking, and better economic alignment. When paired with a nimble, best-value provider, this model allows sponsors to maintain institutional-grade rigor while reducing operational friction and preserving portfolio company economics.