Last update: 15.10.2004


 


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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.


  ADVANTAGES FOR COMPANY OWNERS
ADVANTAGES FOR EMPLOYEES
                                                         • ADVANTAGES FOR MANAGERS