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Transfer
of
business
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Transfer of
business through employee
buyouts
How employee buyouts work?
- The
shareholders sell their shares to a "participation
co-operative" set up for the employees.
- The
cash is provided through loans (bank loans or others)
– the company guarantees the loans and the company will
pay back the loans over time.
- In
every profitable year, shares are usually distributed
to all employees (through employee financial participation
plans or stock options plans) - these shares can later
be sold on the internal market.
- The
more successful the company is, the faster the value of
each person's shareholding rises.
- Everyone
is truly a partner, sharing in information and influence,
profit and capital ownership.
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ADVANTAGES FOR COMPANY OWNERS
ADVANTAGES FOR EMPLOYEES
ADVANTAGES FOR MANAGERS
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