Giving employees an ownership stake

5 steps to make the goal as helpful and painless as possible

Jun 1, 2019 @ 6:00 am

By Adam Shell

Coming up with a way to give employees an ownership stake in an advisory firm helps retain and attract top talent and can be the first step in creating a succession plan. Here are steps to take to achieve that goal:

• Identify key employees who could be part of a new ownership team.

• Approach targeted employees to see if they are interested in an ownership stake and willing to take out a loan, if necessary, to finance their stake.

• Arrive at a mutual decision on how the value of the firm will be calculated.

(More: An inside job: Advisers are picking, grooming successors from within)

• Determine ways employees can finance their part of the purchase, possibly with the help of the firm.

• If part of a succession plan, figure out a timeline to transfer complete ownership to the new team.


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