Smart ESOP management is understanding your full exposure ‐ both short term and the long term. Our data driven share repurchase study, prepared with the actuarial expertise of Optimizing Foundations, LLC, will provide you with a clear view of where you’re headed.
A Menke Repurchase Obligation Study:
- Gives you timely, actionable repurchase intelligence
- Is an actuarial projection of the cashflow needed to fund your future share repurchases, as required by your ESOP plan
- Considers your participant demographics such as retirement, death, diversification, disability and termination
- Includes a baseline and an alternative scenario; unlimited additional scenarios are available
- Projects your off‐balance sheet liability, which can be surprising if not properly managed
- Is integrated with your annual administration and appraisal (if applicable)
How often should I have a Repurchase Obligation Study performed?
- General rule of thumb: every one to three years
- Key factors are company cashflows, ESOP ownership % and duration, participant count and demographics
- To obtain best results, the study is done alongside your valuation report
- Plan sponsors with mature ESOP may need an annual repurchase study
- Your annual ESOP valuation must contemplate share repurchase obligation, so know it!
THE PROCESS:
- We obtain data, and involve you when necessary
- We perform our actuarial analysis
- review our findings with you, which are analyzed and adjusted if necessary. You receive an easy to read report with clear actionable information.
Download our Menke Repurchase Obligation Study Overview
