Embark on the Journey of Employee Ownership with Questions to Consider
Employee ownership is as much of a journey as a destination. The process can be complex, but the rewards - for selling owners, employees, and community alike - can be outstanding. You will need good advisors and service providers, including specialized legal, valuation, fiduciary, and possibly a lender as well.
Employee ownership is one means of creating an ownership transition for a company. Before moving forward, you should ask yourself several important questions:
1) What is your motivation for considering a transfer to employee ownership?
2) What alternatives to employee ownership are available to you?
Public offering
Sale to private owner (competitor, PE, etc.)
Sale to an heir or employee
Other
3) What is most important to you (in rank order)?
Dollar value of the transaction
Employee recognition
Personal legacy
Control over the business
Continued involvement in the business
Corporate culture
4) How stable is the cash flow from your business?
5) How quickly do you want to derive liquidity?
6) What is the governance structure of your current business and the ESOP knowledge-level of key constituents?
7) Have you interacted with any knowledgeable advisors yet?
ESOP service providers
Banker
Others
8) Have you had an ESOP feasibility study performed?
Once you’ve considered the above questions, view our list of advisors and service providers active in the state of Minnesota for some places to start. For the best level of support, schedule a call with Kirsten Kennedy, our Executive Director.
Want to talk to an employee-owned company about their experience?
If you are a business owner and wish to connect with an employee-owned company, view our list of employee owned companies in Minnesota and reach out to us to make an introduction.
We are a non-profit and we don’t charge for any of our services, but donations are always welcome.
Employee Ownership Success Stories
Resources
