OperatingAssumptions Guide

Overview

The OperatingAssumptions object is where you define the discretionary, variable financial and strategic decisions for your ESOP on a year-by-year basis. You will create many different OperatingAssumptions objects to model various “what-if” scenarios and plan for the future.

Source of Truth: Your company’s financial forecasts and strategic plans.

Complete Field Reference

Below is a detailed walkthrough of each field in the OperatingAssumptions object.

`contribution_policy`

Type: object
Required: Yes
Description: Defines your company’s policy for making contributions to the ESOP.

`type`

Type: string
Values: "fixed_amount", "percentage_of_payroll"
Description: The method for calculating the annual contribution.

`annual_amount`

Type: number
Description: Required if type is "fixed_amount". The total dollar amount to be contributed.
Example: 500000

`percentage`

Type: number
Description: Required if type is "percentage_of_payroll". The percentage of total payroll to contribute.
Example: 0.10 for 10% of payroll.

Type: object
Required: Yes
Description: Defines the current and projected future value of the company’s stock.

`current_price`

Type: number
Description: The current price per share of the stock, typically from your most recent 409A valuation.
Example: 100.00

`annual_growth_rate`

Type: number
Description: The projected annual growth rate of the share price.
Example: 0.05 for 5% annual growth.

`repurchase_strategy`

Type: object
Required: Yes
Description: Defines how and when the company will repurchase shares from terminated participants.

`timing`

Type: string
Values: "immediate", "deferred"
Description: Whether shares are repurchased immediately upon distribution or deferred.

`funding_source`

Type: string
Values: "trust_cash", "company_contribution", "company_loan"
Description: The source of funds for repurchasing shares.

`financial_projections`

Type: object
Required: No
Description: Your company’s financial projections, which can influence other assumptions.

Example:

"financial_projections": {
    "revenue_growth_rate": 0.10,
    "ebitda_margin": 0.15
}

Complete Example

{
  "contribution_policy": {
    "type": "fixed_amount",
    "annual_amount": 500000
  },
  "share_valuation": {
    "current_price": 100.00,
    "annual_growth_rate": 0.05
  },
  "repurchase_strategy": {
    "timing": "immediate",
    "funding_source": "company_contribution"
  },
  "financial_projections": {
    "revenue_growth_rate": 0.10,
    "ebitda_margin": 0.15
  }
}

Getting Started

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Examples

API Reference

API Schemas

OperatingAssumptions Guide

Overview

Complete Field Reference

`contribution_policy`

`repurchase_strategy`

`financial_projections`

Complete Example

​Overview

​Complete Field Reference

​contribution_policy

​share_valuation

​repurchase_strategy

​financial_projections

​Complete Example

Overview

Complete Field Reference

`contribution_policy`

`share_valuation`

`repurchase_strategy`

`financial_projections`

Complete Example