Using opportunity cost to understand the true cost of the repurchase obligation on an ESOP company’s share price.
The ESOP Association
ESOP Association Resources
ESOP Brief, Repurchase Obligation, Opportunity Cost, New Present Value, Redeem, Recycle, Resource
Resource, ESOP Brief, ESOP Benefits, Succession Planning, Tax Benefits, Financing, Leveraged ESOP, Diversification
A basic guide summarizing the unique benefits Employee Stock Ownership Plans offer to owners, employees, and communities. This ESOP Brief is available to the public as an informational resource.
ESOP Brief, Repurchase Obligation, Redeem, Recycle, Opportunity Cost, Resource
This ESOP Brief introduces the concept of opportunity cost and the implications for share price when private companies devote resources to fund repurchase obligations.
ESOP Brief, Repurchase Obligation, Valuation, Recycle, Redeem, Resource
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.
ESOP Brief, Leveraged ESOPs, Convertible Stock, Financing, Resource
How to use convertible preferred stock in an ESOP.
ESOP Brief, Leveraged ESOPs, Non-leveraged ESOPs, Financing, Resource
This Brief describes common accounting practices for non-leveraged and leveraged ESOPs.
ESOP Brief, Tax Benefits, Leveraged ESOPs, ESOP Financing, Resource
A broad overview of the unique characteristics and advantages of ESOP financing as compared with conventional debt financing.
ESOP Brief, Fiduciary Liability, Trustee, Prohibited Transaction, Self Dealing, Adequate Consideration, Breach, Resource
A guide to the ERISA rules all ESOP fiduciaries need to know to fulfill their obligations.