Every company has to be owned by someone – why not the people working in the business ? - Succession Plus

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Every company has to be owned by someone – why not the people working in the business ?

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Every company has to be owned by someone – why not the people working in the business ?

By , July 11, 2009

A new UK paper ( http://www.employeeownership.co.uk/publications.asp ) on employee ownership poses this question by Willie Watt of Martin Currie and outlines some amazing improvements in this vital area. The paper examines ten UK businesses who have successfully adopted share plans where employees now own ( directly or indirectly ) equity in the business in which they work. As a tool to fund and implement business succession planning these plans are unmatched in their ability to provide a structured approach to a normally complicated funding issue for most business owners looking at their exit options. The reports matches many of our key concepts in introducing plans and highlights the longer term strategic approach we are fond of when implementing succession based share plans. ” The transfer of a business into employee ownership can very often be a process undertaken over an extended period of time.” The report looks at “concrete examples of how businesses have found the necessary capital to become employee-owned and at the issues involved in this process. ” Unfortunately many advisers still do not see and understand the true benefits of this type of approach – the report mentions banks, accountants and lawyers who all advised against the introduction of employee equity – but the quote from the previous owner of one successfully implemented plan speaks volumes – ” We believe employee ownership is the best way to fund, retain and develop talent.”

Craig West

Craig West

Managing Director | Succession Plus

Craig West is a strategic accountant who has over 20 years’ experience advising business owners. His background as a CPA in public practice, provided invaluable experience in the key issues of concern to business owners. Following 6 years of study to gain two masters degrees, Craig focused on Capital Gains Tax (CGT) for business sales advising on strategic management of tax issues. This experience formed a very strong view that business owners (and often their advisers) were unprepared and unaware of the steps required to prepare a business for exit.

Craig now acts as a strategic mentor for mid-market business owners and has written four critically acclaimed books on employee incentives, succession planning, asset protection and exit strategies. Craig has conducted numerous seminars and keynote presentations throughout Australia & internationally, including adviser education programs for the Institute of Chartered Accountants and CPA Australia.