Employee Share Ownership May Help Businesses Stay Open as Boomers Retire - Succession Plus

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Employee Share Ownership May Help Businesses Stay Open as Boomers Retire

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Employee Share Ownership May Help Businesses Stay Open as Boomers Retire

By , March 2, 2017
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The article from the San Francisco Chronicle discusses the fact that baby boomers own half of the privately held businesses that have employees. In every year, nearly 4,000,000 across the United States retire.

Selling isn’t always an option. According to the report, only 20% of small businesses that list themselves for sale actually find a buyer. More than 85% of business owners do not have a succession plan which outlines who will take over the business when they no longer want to (or are no longer able to) run the company according to a report released by Project Equity last week. Passing the small business onto other family members (family/generational succession) may be possible (about 15% of the owners actually do this) but it’s not always viable. In many cases, the companies simply close.

Employee ownership often works “it’s not as big a shift as people sometimes assume” due to the fact that it’s a shared form of entrepreneurship and differing skills amongst employees actually helps. The structure is designed to protect the employees (from each other and external issues) and provide certainty about how the plan works and what rules the owners operate under.

"Employee share ownership may help businesses stay open as boomers retire."

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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.