Blue Ridge ESOP Associates Industry News

There are many options to consider when determining the best way to handle an ESOP plan’s
repurchase obligation.

Topics: Repurchase Obligation

Each ESOP is unique and must consider their own company goals when deciding the appropriate benefit levels. There should be an ongoing balance between the company cash flow and participant benefit levels. The goal is to maximize the expected return for the participant, however, to do so the ESOP program must be sustainable and not hinder the growth of the company. A consideration especially as an ESOP matures is determining the appropriate benefit level. Consistent benefit levels can help with a sustainable repurchase process and set expectations for the plan participants. Benefit levels are measured based on the contributions and the fair market value.

Topics: Repurchase Obligation, ESOP Loan Agreement

When comparing ESOP benefit levels there is variance across all ESOP companies and even within the same ESOP company from year to year. This article is intended to highlight the key factors that contribute to benefit levels and provide reasoning for the variance.

Topics: Repurchase Obligation, Leveraged ESOP

Topics: Repurchase Obligation

Our Blue Ridge professionals will be attending multiple conferences this week.

On Monday, Jon Williams and Tom Roback are attending The New England Chapter Spring Conference in Burlington, MA. Jon shared more about ESOP 101 to help those who are new to the whole ESOP world and to give guidance to those who needed a refresher about the basics. The session highlighted how an ESOP works, why ESOP companies are so great, and what a company can do to make theirs better.

Topics: Repurchase Obligation, ESOP Administration, Releveraging your ESOP

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.

Topics: Repurchase Obligation, Distributions

The Heart of America's 19th Annual Fall ESOP Conference is coming up next week! There is still time today to register here. At this conference, our professionals Chad Guzinski and Scott Freund will be available to give an overview of the additional services we provide along with our standard ESOP & 401k administration services. On Thursday, you will have the opportunity to hear Anthony Brunsvold present about the Three R's of Distributions and Their Impact on Cash Flow & Repurchase. In this technical session, experienced practitioners will explain the real meaning behind the terms Recycling, Redeeming and Releveraging and how each impacts the ESOP.

Topics: Repurchase Obligation, Conferences

Blue Ridge ESOP Associates is proud to be a sponsor for the 32nd Annual Ohio Employee Ownership Conference.

Topics: Plan Design, Repurchase Obligation, loans, sustainability

The Heart of America's annual spring St. Louis ESOP seminar is tomorrow! At this conference, you will have the opportunity to hear Anthony Brunsvold co-present at "The Great Debate: ESOP Sustainability" from 11:00 a.m. to 12:00 p.m. Hot topics that bring challenges to the management of ESOP companies will be discussed with suggested strategies that might help such challenges as distribution policy, repurchase methods, funding strategies and releveraging.

Topics: Repurchase Obligation, Distributions, Conferences

The Southwest Chapter 2017 Fall Conference will be September 29, 2017. Due to Hurricane Harvey, the location has been moved to the Omni Fort Worth Hotel, and you can register here.  At this conference you will have the opportunity to hear Kevin Rusch speak about "Mature ESOP Issues: Rebalance, Reshuffle, Recyle and Redemption" which will focus on the 4 "R's", reviewing definitions as well as practical application and numerical examples of how the provisions work as well as impact on repurchase obligation.

Topics: Repurchase Obligation, ESOP Administration, Conferences