Things to think about
To prepare for an employee ownership transition you should think about:
- Are your motives the right ones? The business needs to thrive for the future so it needs to be right for you, the business and the employees.
- Is the business financially stable?
- How you will finance the sale - vendor (founder) loan, cash reserve, gift, bank loan, third party equity or employees buy shares (or a combination)?
- What your role in the business will be post transition, for how long, and when you will leave the business entirely.
- Your grief and emotions that you could experience from no longer owning your business.
Strong building blocks
The EOA believes that the key building blocks to deliver good employee ownership are good governance, good engagement and communications, and good leadership.
Five more things to make sure you set off in the right direction:
1. Explore which EO model and governance is the right fit for the business.
2. Identify who will lead the business post succession.
3. Plan how and when to bring your leadership team on board with the planning.
4. Plan how to bring your employee owners on the journey with you.
5. What support do you need to achieve your objectives?
Be inspired by case studies from employee owned businesses
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