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Ownership Advisors > Smart strategies for employee-owned companies > Repurchase Obligation Studies and Funding Programs

Repurchase Obligation Studies and Funding Programs


In spite of ongoing education at ESOP association and industry events, repurchase liability continues to be a serious threat to the growth of employee ownership in the United States.

Most repurchase studies are complex reports with page upon page of projections based on assumptions few truly understand. It's no wonder so few companies actually implement funding plans based on these studies. Ownership Advisors has practical experience in helping ESOP companies resolve repurchase liability challenges through a well-defined financial planning process that encourages funding. Our goal is to help you develop a successful funding plan that fits your company’s cash flow and risk philosophy. If you have already completed a repurchase obligation study yourself or with another firm, we are happy to integrate your current forecast into our funding model to help keep costs down.

We believe implementing a funding strategy requires a "top down" approach that includes key management and stakeholders. We understand the complex issues involved in repurchase planning and know many of the decisions you face are subjective. While current law does not require you to fund your plan or even measure the problem, we believe it is prudent for fiduciaries to demonstrate proof of prudent process. A well documented funding strategy with funding in place goes a long way to help reduce fiduciary risk and is simply “the right thing to do” in our view. We can help you make proactive decisions regarding your ESOP rather than simply reacting to the uncertainty of the repurchase obligation.

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