Vice President Prairie Capital Advisors Chicago, IL
ESOPs have to do more planning than most companies because they have to manage around future liabilities that are often difficult to measure. The repurchase obligation is the most impactful, but there are also SARs, warrants, seller notes, and possible acquisitions that a board may be considering. In this session we will talk about how to plan around these events, and manage liquidity effectively to be ready for the unexpected. We will review the fundamentals of the repurchase obligation, the various funding methods, and evaluate the potential liabilities for the company. NCEO Publication: The ESOP Repurchase Obligation Handbook NCEO Toolkit: Repurchase Obligation
Learning Objectives:
Understand what the ESOP repurchase obligation is.
