Employee Ownership

//Employee Ownership

Small business owners are getting a new incentive to sell to their employees

The federal government just made it a lot easier to form an employee-owned business. In an increasingly rare example of bipartisan cooperation, President Donald Trump on Aug. 13 signed a defense bill into law that included a popular provision that allows the Small Business Administration to straightforwardly loan money to employee-owned businesses that wish to buy out retiring small

The Company Behind Some Of Hollywood’s Favorite Designs

If you need convincing that hats are back look no further than this September’s issue of Oprahmagazine, featuring Oprah wearing a stylish golden fedora from The Salting, which just launched its unisex fashion line heavy into hats online and in two pop-up shops in Tribeca’s 180 and Sag Harbor’s Sylvester & Co. Or Brian Dawkins at the Pro Football

Could Hybrid Forms of Worker Ownership Shape the Economy of the Future?

An article by Peter Walsh, Michael Peck, and Ibon Zugasti in the Harvard Business Review calls for the “use of worker buyouts, in which ownership of a company transfers from a single person or a small number of people to the workers of the company” as a means to reduce wealth inequality. The call itself is not

Plan Your Succession

If you’re fond of sports analogies, think about how football teams hold players in reserve to back up other team members when they’re sidelined with injuries. Baseball clubs like to cross-train players in different positions to keep their squads versatile. As they contemplate moving on to the next stages of their lives, shouldn’t owners of

Why the U.S. Needs More Worker-Owned Companies

The gap in wealth in the United States between the ultrawealthy and everyone else has reached its widest point in decades. One way to narrow the divide is through the use of worker buyouts, in which ownership of a company transfers from a single person or a small number of people to the workers of

Business flows for employee-owned firm

Anyone who’s taken a swim in the Sheraton Waikiki's infinity pool, or driven past the fountain at the entrance to Kahului Airport or looked up at the corner of Auahi and Kamakee streets to see Anaha’s glass-bottomed pool cantilevered over the street is familiar with Pacific Aquascapes’ work. The locally owned company is one of

Why This Consulting Firm Doesn’t Have An Exit Strategy

For most professional services firms, sustained growth usually involves an acquisition or a transfer of ownership.  Many founders in general have their eye on their end game in today's fast-moving, milestone-driven, valuation-obsessed business environment.  But for Bruce Ballengee, CEO and Co-Founder of Pariveda Solutions, Inc., a $100 million, 500-person technology strategy and solutions consulting firm, no exit

CFO says role is more than getting figures right

Peter Whitfield believes one of the most important duties of a CFO is to put people in position to succeed. “My role is not just about getting the numbers right, it is more about ensuring that everyone who needs to understand the numbers gets that education,” says the New York native. “It is also about

Lessons From The King Of Whole Grain: Bob’s Red Mill

If you’ve ever walked the aisles of a natural food store, you will recognize Bob Moore and his Bob’s Red Mill logo. Bob is the bearded 89-year-old gent with the big specs and blue cap, assuring you his products are whole grain and super-nutritious. That sheaf of wheat on the logo is no accident. What

British Study Makes the Case for a National Employee Ownership Policy

In Great Britain, an estimated 325 employee-owned businesses employ over 200,000 people. According to Deb Oxley, CEO of the Employee Ownership Association, “Hundreds more companies are in the pipeline waiting to convert…and the sector is forecast to double over the next decade.” To support this effort and build public support for sectoral growth, the British employee ownership

No Fable: ESOPs Gain Favor Among Business Owners Looking to Retire

After 20 years of running her consulting business, Jennifer Wise started to think about her next challenge: how to transition her company and retire. As the sole owner and founder of Wise Consulting — an HR and payroll consulting company — Wise said she started looking at options for the future of her business about

This company pioneered a new business structure to preserve its mission

The new owner of Organically Grown Company, an Oregon-based organic produce distributor, isn’t a person but a trust, created to help the company maintain its social and environmental mission as it grows. The company is the first in the U.S. to use something called purpose trust law to restructure itself. “Most ownership structures are still about

Automated Packaging Systems’ ESOP Valuation Jumps 47%

Automated Packaging Systems, the world leader in high-reliability bagging systems, has announced that its per share stock value in the company's Employee Stock Ownership Plan (ESOP) jumped 47% over last year. "This increase is unprecedented and is driven mostly by our outstanding revenue and income growth in 2017," said Cliff Brehm, President. "I want to thank

Appvion employees grapple with losing $40 million in retirement funds

Nearly $40 million in retirement funds disappeared into thin air June 13 when the Appvion paper company was sold. Longtime employees found out that day that their heroic efforts to buy and save the company 17 years ago may have ultimately cost them their nest eggs. The amount lost varied among employees, with some losing as much

ESOPs offer unique benefits and succession planning options

I am the sole owner of my business, and I am planning to retire within the next five years. I have considered an employee stock ownership plan, (ESOP) as one of my succession options. Will you explain the benefits and risks? We applaud you for considering your succession plan from a variety of angles, including

Is an employee stock ownership plan right for your company?

A large number of privately-held U.S. companies are owned by members of the baby boomer generation, and with these owners approaching retirement age, many are considering an employee stock ownership plan (ESOP) as a way to easily liquidate their ownership for “fair market value,” while also possibly capitalizing on certain tax benefits (such as the

Cleveland’s Great Lakes Brewery to Become Employee-Owned

“Growing numbers of US companies are giving workers financial stakes via employee stock ownership plans,” writes Judy Stringer in Cleveland Crain’s Business. Now Great Lakes Brewing Company is poised to join their ranks. Bolstr, a small business crowdfunding site, listed Great Lakes as the number-one craft brewery in Ohio in a 2015 article and described the brewpub as follows: Great Lakes

Charleston|Orwig Inc. is now employee-owned.

Hartland-based strategic marketing and communications firm Charleston|Orwig Inc. is now employee-owned. The company’s owners, chairman and founding partner Lyle Orwig, chief executive officer Mark Gale, and president Marcy Tessmann, sold their 33 percent ownership stakes to an employee stock ownership plan trust on June 15. The company is now 100 percent owned by the ESOP, and all

ESOPs, a Heartland specialty, turn workers into owners

For Hal Gershman, the problem was one of succession: what to do with the North Dakota business that his father, “Happy” Harry Gershman, started in 1944, and that Hal took over and steered through multiple expansions starting in 1976. Hal’s daughter had her own career and wasn’t necessarily interested in assuming leadership of Happy Harry’s