Why transfer your business to your employees
Here, transferors express the reasons why an increasing number of managers are selling their businesses to their employees. These are as many arguments that will help you consider this solution in full knowledge of the facts.
You ensure that your business is sustainable
- You keep the same team: there is no loss of expertise.
- A smooth transition for the clients and suppliers that keep the same contacts.
- Your employees taking over the business will also be very motivated successors to continue your adventure.
- A participative management style oriented towards wise decision-making (no excesses, no waste, etc.).
- A compulsory portion of the net income is allocated to the reserves: a useful cushion in times of crisis and a guarantee of financial soundness.
- A business that is transferred to its employees reduces its risk of dying in five years by 20 to 50 %. (Oséo study, France)
You protect the jobs that you have created
- No risk of splitting up your activities, of “piecemeal sale” and therefore, related redundancies.
- No relocation risks: the working tool belongs to the worker-members.
There is no need to search for buyers
- You know them better than anyone else.
- They know the business inside out and are directly operational.
- There are many worker-members, which implies more financial means than with a single buyer (employee).
- You save time searching for buyers: they are right there.
- You protect the strategic and confidential elements of the business.
You can ensure a smooth transition
- You can provide support to your employees taking over the business; they will probably need it.
- You know the type of support needed by each employee taking over the business: management, sales, technical advice, etc.
- For the transfer, the business is converted directly into a worker cooperative; it keeps its trading company status (public or private limited company), identity and history.
- The business retains its usual partners: banks, advisers and suppliers.
You can pursue an activity in the business
- Because you can now (finally) focus on what really motivates you the most: R&D, skills transfer, sales, etc.
- Because you can remain active longer or make up for the missing months required to qualify for a full pension.
You give even more meaning to your action
- A solution that is in keeping with its time in a society in which:
- individuals are now becoming increasingly more pertinent;
- solidarity is being increasingly considered an asset;
- individualism is increasingly showing its limits with each passing day.
- A decision that goes way beyond a simple financial operation.
- The reaffirmation of the values that you have defended, undoubtedly, for a long time.
- Transferring an asset to future generations of employees of the business.