Club E Will be joined by Sue Crockett, Tom Crouse, Bruce Christensen, Benjamin Tsai and Dan Markowitz
Over the next 10 years, more than 2.4 million U.S. businesses owned by retiring baby boomers will change hands or dissolve and unfortunately, studies show that more than half of all small business owners do not have a succession plan. Even if businesses have a succession plan, many MN businesses will be sold and leave the state or close their doors permanently, resulting in lost jobs, tax base, and community impacts all without having ever known that transitioning their business to an employee ownership model is even an option. What is your plan?
Employee ownership is a business model in which employees collectively own a percentage of the business for which they work. Two of the main forms are Employee Stock Ownership Plans (ESOPs) and Worker Cooperatives. In both, employees are given a financial stake in the business. As the business prospers, employees prosper. Today’s session will provide the story of two businesses that converted to an employee ownership model and some of the basic technical aspects that went into the transition.
Our Speakers:
Sue Crockett, Sue is the Executive Director of MNCEO aimed to educate business owners and their employees on the benefits of employee ownership via Employee Stock Ownership Plans (ESOPs), worker cooperatives, and Employee Ownership Trusts (EOTs). It is our mission to turn the state of Minnesota into a place where every working person can also be an employee owner.
Tom Crouse, Tom Crouse has been a Writer and Editor in the Twin Cities of MN for nearly a decade under the pen name T. Martin Crouse. He’s worked for publications like “City Pages” and founded the indie publishing company Sic Semper Serpent in 2012. As a Salesman, he uses his copywriting talents for the greater good. After a leading role in converting Happy Earth Cleaning into a Co-op, Tom is dedicated to helping more businesses transform into an employee-ownership model
Bruce Christensen, Bruce joined Christensen Group in 1979. He acquired the company in 1985 from Gene Christensen, the company’s founder. At Christensen Group, Bruce’s primary role is village elder and business succession. The company’s 2006 sale to the ESOP launched the financial phase of corporate succession. Bruce leads the company’s second phase - leadership succession.
Benjamin Tsai, Benjamin Tsai is Program Manager of The Worker Ownership Initiative (WOI) at Nexus Community Partners. This program assists with the conversion of privately-owned businesses into employee-owned co-ops. Our goal is to help business owners utilize employee ownership as a succession strategy, with the aim of keeping businesses and jobs rooted in local communities. Benjamin comes to Nexus with 17 years of experience in the cooperative sector. He co-founded The Hub Bike Co-op in 2002 and served as CEO and Development Coordinator. He has since moved on to work as a consultant for other co-ops and nonprofits.
Dan Markowitz, Dan is the leader of Boulay’s ESOP practice. He specializes in audit and other financial reporting engagements for public, private and ESOP-owned clients in a variety of industries including retail, engineering, professional services, real estate, and manufacturing and distribution. Dan analyzes business operations to provide recommendations for enhancing overall business performance, and he provides financial and consulting services to ESOP companies, including ESOP feasibility studies, ESOP sustainability projects, repurchase obligation studies, and managing annual ESOP administration. Dan also leads the due diligence team in evaluating the financial and operational reporting system of acquisition target companies, and he assists clients with merger and acquisition activities, including deal structuring, tax impact of the transaction, and quality of earnings reports.