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.
• 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.