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Individual Proposal

Repurchase Obligation and Sustainability

The Power of Leverage: Managing ESOP Repurchase with Confidence

Wednesday, April 8, 2026
4:00 PM - 5:00 PM CDT
Location: 108
CE: 1
CE Type: CPE, SHRM
Education Level: Intermediate
Repurchase obligations are one of the most significant long-term financial commitments for ESOP companies. This session explores how smart use of debt financing can provide the liquidity needed to meet obligations while preserving growth and stability.
We’ll discuss why relying on debt may be more viable than holding large cash reserves, including the opportunity cost of idle capital, the potential to reinvest cash into business growth, and the ability to align borrowing with predictable repurchase needs. Attendees will gain practical insights on structuring debt, balancing risk, and aligning financing strategies with the long-term goals of the ESOP and its participants.

NCEO Publication: The ESOP Repurchase Obligation Handbook
NCEO Resource: Repurchase Obligation Toolkit

Learning Objectives:

  1. Understand the effective cost of repurchase obligation depending on your plan design.
  2. Get an overview of sources of capital and which is likely best for funding repurchase obligations.
  3. Determine whether borrowing to fund repurchase obligation may be a viable option for your company.