The trend identified in this piece from Canada resonates well as the move towards Employee Ownership as a consideration for family business is growing.
Many family firms are approaching a transition and as such need to do the right thing for the family and the business, and for many, looking after loyal and trusted employees is part of the process too.
Family businesses struggling to pass the business on to the next generation, for whatever reason, may not want to simply sell the firm, but instead prefer to sell the firm to the employees, essentially in many cases the 'extended family' anyway.
With more and more family business owners around the world approaching retirement and considering their options, employee ownership might be one to consider.
Businesses worth more than $1 trillion will change hands in the next decade due to owner retirement in Canada and they won’t all pass from one generation to the next. More than half of baby boomers approaching retirement age have no plan for handing the reins to the next generation, according to the Canadian Federation of Independent Business. And that assumes children want the reins. That’s why employee ownership plans are gaining traction as a well-managed strategy CEOs and other business owners can use to recover some equity when they retire and create a tight-knit group of highly engaged employee-owners to carry on without them.