FOR EMPLOYEES
ALL EMPLOYEES BENEFIT
From the maintenance crew to the executive team, in an EOT, all employees share in the ownership of the company.
Long Term Success
When all employees become owners, everyone has an ownership stake in their work and benefits from mutual success. Based on Canadian examples like Friesens Corporation, and models in Britain and the USA, employee ownership results in:
- A more sustainable long-term ownership structure
- Superior company performance, tending to be more stable and with better ability to endure tough economic times
- More total compensation than non-owner workers
IS IT THE SAME AS MANAGEMENT BUYOUT?
No. It is a common practice to have management teams buy out the family-owned business. This is not the same as employee ownership where every employee, regardless of position, has an ownership stake in the company.
Employee Ownership VS Management Buyout
All Employees Benefit
Ownership is through an Employee Ownership Trust (EOT)
Risk is low for employees
Seller qualifies for up to $10 Million capital gains tax free
VS
Managers Benefit
Ownership is through Joint Proprietorship
This can be the right solution for some business transitions
Risk is high for the acquiring Managers
There is no tax benefit for the Seller
*There are many more differences as well. Sign up for e-news to get more updates on employee ownership benefits and Tallgrass opportunities.
A FORMULA FOR SUCCESS
Employee ownership unlocks financial opportunity while preserving the company’s legacy for employees, clients and communities — a multifaceted solution to the succession challenges faced by many family-owned businesses. Imagine your company as part of a larger employee ownership movement — Tallgrass (and Friesens) have the comprehensive experience of employee ownership and are invested in your success.
IT’S GOOD BUSINESS
Employee ownership has many benefits to the seller, the employees and the community. This model has proven to be more resilient to fluctuations in the market.
When a company transitions to being employee owned, there is a culture shift driven by an increased sense of ownership and control. The success of the company, dependent on the efforts of the employee group is more likely to have stable long term gains.
Consider the benefits for employees.
EMPOWERMENT
Feel a greater sense of control and connection to outcomes
FINANCIAL
Enjoy a new source of wealth
Entrepreneurial
Identify opportunities and barriers to growth
Motivation & Pride
Feel more self motivated to achieve
Retention & Recruitment
More reasons to stay or join
Training & Promotion
Expect opportunities to grow skills
HOW IT WORKS
Transitioning to Employee Ownership Takes Time and Commitment —
that’s where Tallgrass makes all the difference!
1
Owner Has to Agree to Sell
Owners ultimately hold the decision making power to decide whether to sell to their employees through an employee ownership trust. Tallgrass provides the financial investment and legal aid to structure this deal.
2
Who Runs the Company?
While all employees become owners, they do not suddenly become equal participants in decision making. Using proven organizational structures, built upon existing processes, Tallgrass provides support to ensure there are clear lines of communication and authority for decision making that supports a sustainable and successful process for running the company.
3
Successful Transition
To support the growth and management of the business and employee owners as they transition the company, Tallgrass provides:
- Shared tools and resources
- Guidelines for communication and decision making
- Training and facilitation
- Key performance indicators and formulas for operational excellence
- Leadership skills
- Best business practices
- Knowledge and lived experience with employee ownership
- Shared services
- Keys to establishing a culture of collaboration and reward systems
OWN IT!
Are you an employee who sees a fit for employee ownership?
Learn more about the type of company Tallgrass Employee-Ownership Equity Fund is looking to invest in.