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The Configuration Philosophy

The Repurchase Engine’s configuration is designed around a core philosophy: the separation of stable, legal rules from variable, strategic assumptions. This separation makes your simulations more accurate, easier to manage, and less prone to error.

PlanRules

The legal framework of your ESOP, based on your plan document. Changes rarely.

OperatingAssumptions

Your annual strategic and financial decisions. Changes frequently.

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The Three Core Configuration Objects

Every simulation in the Repurchase Engine is driven by three main configuration objects:
  1. PlanRules: This object defines the legal and administrative rules of your ESOP. Think of it as a digital version of your plan document. It includes things like your vesting schedule, distribution policies, and eligibility requirements. Once set up, PlanRules rarely change.
  2. OperatingAssumptions: This object defines the financial and strategic assumptions for a given year. It includes your contribution strategy, share valuation growth, and repurchase strategy. You will likely create many different OperatingAssumptions to model different “what-if” scenarios.
  3. InitialState: This object is a snapshot of your ESOP at the beginning of the simulation. It includes your employee census data, the current state of your trust’s cash and share accounts, and the details of any outstanding ESOP loans.

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How They Work Together

Think of it like this:
  • PlanRules are the rules of the game.
  • OperatingAssumptions is your strategy for the year.
  • InitialState is the state of the board at the start of the game.
You run a simulation by providing the engine with these three objects. The engine then projects the future of your ESOP, year by year, by applying your annual OperatingAssumptions within the constraints of your PlanRules, starting from your InitialState.

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Getting Started

Ready to dive in? Here’s our recommended path:
  1. Start with the PlanRules Guide to model your plan document.
  2. Next, read the OperatingAssumptions Guide to learn how to model your financial strategies.
  3. Finally, use the InitialState Guide to prepare your starting census and financial data.