Blue Ridge ESOP Associates Industry News

At the Illinois ESOP Spring Conference last week, Kevin Rusch presented on a panel that reviewed the roles of "Trustees & TPAs". The panel was able to answer questions from basics like what do they do and why does your company need them to more complex such as share allocations and limiting liability. The purpose of the session was to help companies manage the day-to-day operations of their ESOPs.

Today, Kevin Rusch presented "Repurchase Obligation Studies: How to Avoid Garbage In/Garbage Out" at the New South spring event today. The key to a successful Repurchase Obligation Study is the assumptions that are used. Assumptions regarding company value, future contributions/dividends rates, employee turnover rates, distribution policy provisions all play a key role in projecting future obligations. In this session, Kevin and co-presenter, Kelley Finnell of Executive Financial Services, discussed the selection of reasonable assumptions and considered how the three distribution methods (Recycling, Redeeming, and Releveraging) can be used to manage a company’s future repurchase cash flow obligations. The presentation  included case studies, planning tips, and audience participation.

When the owners of Best Friends Pet Hotel were looking to sell their business, they found a way to let their employees become the new owners. With the guidance of Mosaic Capital Partners, an ESOP Trust was established and a strategy set into motion to accelerate the company's growth. The bridge that Mosaic built allowed the original owners to see the profit of their sale sooner than a traditional ESOP transaction. Meanwhile the employees who work in a retail environment are able to boast about the fact that they are owners of their company. Learn more about how this bridge to employee ownership might be a viable option for selling your business.

Blue Ridge ESOP Associates is pleased to announce the addition of Carla Klingler and Beth Bauer to our team of professionals.

The OEOC will be hosting the following webinar presented by Blue Ridge ESOP Associates' professionals, Pam Themar and Kevin Rusch.

With the 116th Congress now in session, we would like to encourage you to invite your representatives for tours of your company. On-site tours allow members of Congress to see first-hand the value of employee-owned companies. ESCA has given an update below of the 10 new members from the House Democrats who have been appointed to the House Ways and Means Committee.

As the result of the Bipartisan Budget Act of 2018, and the subsequent issuance of proposed Treasury regulations, hardship distributions should generally be easier for participants to obtain, assuming they are covered by a plan with a hardship provision and assuming that plan sponsors are on board with the hardship provision changes that are optional.  Plan sponsors should be hearing from their recordkeepers and third party administrators regarding the default changes that will be occuring unless the plan sponsor:

When you are hired by a new company, one of your initial tasks may include completing various beneficiary forms for the company’s benefit plans. Most people, including myself, will fill it out and not think about my initial election anymore. Some people may overlook this and not fill one out at all. So, you may be asking yourself, what is the big deal?