Module 4 – Why and How We Became Employee Owned
A firsthand look at the decision and the process — why organizations choose employee ownership and the practical steps involved in making that transition a reality.
Module Description
Introduction
Welcome to the final part of the course. This section introduces basic information about implementing two forms of employee ownership, the ESOP and the worker cooperative. The two company founders who you met earlier will share more about how they adopted employee ownership. Tracy Till is co-founder of a company that became an ESOP. Jarret Schlaff co-founded a worker cooperative. Both will tell you why their business became employee owned, and how they and their colleagues did it. Both will describe important steps in the process and lessons they learned along the way. We have included links to optional, supplemental, instructional resources. By the end of this portion of the course, you will know much more about how one business owner sold the business she co-owned to employees through an ESOP, and how a different organization became a worker cooperative. You will take away a basic understanding of the key steps in the process, knowledge of important questions to ask, and resources for finding more detailed guidance.
Learning Objectives
- Know key steps involved in setting up an ESOP, and a worker cooperative, and questions to ask.
- Visualize how existing organizations are successfully using ESOPs and worker cooperatives (with case studies, videos).
- Learn from real-life individuals who drove these types of models in their own organizations or new businesses.
- Identify one personal goal.
Lessons
Begin with Lesson 1 below and work through the lessons in order. Each lesson includes short videos and reading materials.
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1) Why and How We Sold Our Business to the Employees through an ESOP
2) Lessons Learned: The Team of Experts (Legal Advisor, Trustee, Valuation Firm)
3) Lessons Learned: The Importance of Communications
4) Reflection on the Cost, and Tax Benefits, of Our ESOP (Optional Video)
5) Important Questions to Ask First
6) Why and How We Started a Worker Cooperative
7) Lessons Learned Starting a Worker Cooperative
8) Important Questions to Ask Before Considering a Worker Cooperative
