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Repurchase Obligation

Also known as: ESOP Repurchase Obligation
Published on 2024-04-29 | Last edited on 2025-07-22
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Definition

A repurchase obligation is the legal requirement for closely held ESOP companies to buy back shares from former employee-owners at fair market value, typically upon retirement, termination, disability, or death.

#ESOP
#Diversification
#Business Valuation

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