ESOP Webinar Series Part 3: Managing Your Repurchase Obligation
Wednesday, July 28, 2021
8:30am-9:45am
Welcome to Kreischer Miller's 5-part ESOP webinar series with topics that will be applicable to both companies that are already structured as an ESOP as well as those that may be considering converting to an ESOP.
Part 3 of our ESOP webinar series: At inception, every ESOP company creates a repurchase obligation, which is the obligation to pay ESOP participants their account balances when they leave the company or retire. This financial liability can become substantial over time as the ESOP transitions from the transaction phase to the deleveraging phase and then to the mature phase. Planning and managing the repurchase obligation is critical in order to make sure the ESOP stays financially healthy and avoids a liquidity squeeze.
Agenda items included:
- The factors that affect the repurchase obligation and how to understand and plan for them
- The timing of when the company should engage in serious review and understanding of its repurchase obligation
- Tools, techniques, and processes for managing repurchase obligations
- Examples of how different ESOP companies tackle the management of their repurchase obligations
Presenters:
- Mario Vicari, Director, Kreischer Miller
- Mike Borinski, Sr. Vice President of Finance & CFO, Bradford White
- Bill Arrowsmith, CFO, Restek Corporation
- Mike Gore, CFO, Penn United Technologies, Inc.
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Watch the Rest of Kreischer Miller’s Complimentary ESOP Webinar Series below:
ESOP Webinar Series Part 1: The Effect of Biden Tax Proposals on ESOP Companies
ESOP Webinar Series Part 2: Maintaining Control Over the Decision to Sell Your ESOP Company
ESOP Webinar Series Part 4: The ABCs of ESOP Plans – How an ESOP Can Work for Your Company
ESOP Webinar Series Part 5: Using Your ESOP Plan as an Acquisition Tool