THE EMPLOYEE OWNERSHIP SCENARIO

We often encounter two distinct scenarios among business owners considering employee ownership. The first involves owners and their partners who are in the early stages of exploring employee ownership as a potential cornerstone of their growth strategy and long-term succession plan. These owners are seeking guidance on whether employee ownership aligns with their vision and how to begin navigating the transition.

The second scenario involves owners who are further along in their journey, actively comparing employee ownership to alternative options, such as offers from potential buyers already at the table. These owners are weighing the financial, cultural, and legacy implications of employee ownership against more traditional exit strategies and need a clear understanding of how it measures up to their goals.

As they embark on this journey, they face the challenge of navigating a complex array of employee ownership models. From traditional ESOPs (Employee Stock Ownership Plans) and worker cooperatives to innovative Employee Ownership Trusts (EOTs), phantom stock, and hybrid approaches, the options are vast and nuanced.

Without clear guidance, it can be difficult for owners to identify the best fit for their business, employees, and long-term goals.

Finding the right employee ownership solution presents a paradox: it’s both surprisingly easy and frustratingly difficult. It’s easy because a host of advisors, consultants, and organizations are eager to guide business owners toward specific models, each offering their unique expertise in executing ESOPs, cooperatives, EOTs, or other structures.

However, the abundance of options can also make it hard, as few of these partners are agnostic to the outcome. Our goal is to is to play the role of the unbiased advisor—someone solely focused on understanding the unique needs of the business and its stakeholders and providing guidance to maximize the gains to owners and employees.