Using opportunity cost to understand the true cost of the repurchase obligation on an ESOP company’s share price.
The ESOP Association
Understanding the repurchase obligation and its effect on an ESOP company’s valuation.
This ESOP Brief explains how an ESOP company’s repurchase obligation should be understood and managed, and how the repurchase obligation associated with the ESOP should be reflected in the valuation.
This ESOP Brief introduces the concept of opportunity cost and the implications for share price when private companies devote resources to fund repurchase obligations.
Both S corporation and C corporation ESOP companies must be prepared to pay cash equal in value to stock in a participant’s account, per ERISA distributions rules.
A summary of the valuation issues S corporations can encounter. This is a highly technical ESOP Brief.