Using Employee Ownership as a Business Succession and Exit Planning Tool

This session will focus on the psychology of ownership in an employee ownership plan, as a tool to build growth, retain key people, and develop a succession strategy. The session is built on a combination of academic research and practical experience in implementing over 200 employee ownership trusts, using a proprietary structure called a Peak Performance Trust or PPT.
The underlying psychology of ownership drives employees to perform better and advance as leaders, and turns them into champions of culture, mission, and values. This shift in mindset, when accompanied by increasing three key plan elements (people in the plan, percentage equity held by the plan, and the share valuation), has proven to have significant benefits. These include higher enterprise value and better economic outcomes for businesses, their founders, and the communities they serve.
The underlying data metrics track performance for over five years (the first PPT plan was established in 2012) and clearly show the sustainable difference employee ownership can make within privately owned companies. The interactive workshop will review the various design elements and performance criteria that have been developed to achieve these outcomes, using real client case studies and examples. Participants will learn and practice the 12 design levers, which can be used to align employee behavior with business outcomes and ensure a successful outcome for all stakeholders.

NCEO Publication: Selling to an ESOP and Financing the Deal