Over 20 years we have had the honour of meeting many business owners who wanted to implement an ESOP for their company. We have also interviewed thousands of employees of these companies on their desire to become owners.
In our opinion there are two types of owners. The first we call Founding Owners. These are people who start a business where none existed before. They have an idea, a passion, and a skill which they believe will be wanted by clients and customers. Then they risk everything to start the business. Many go without salary, raising funds from family and friends and putting up their own assets as collateral for bank funds. The highest risk for a business is the first 5 years as most start ups fail during this period. But this risk does not deter Founding Owners.
A “management buyout” is a buzz phrase currently used in many business discussions, and for good reason.
The greatest generation of entrepreneurs in Canadian history will retire within the next 10 to 15 years, and these men and women are looking for a way to exit their companies in a way that meets their needs. Not only do they want to leave with an abundance of retirement funds, they also want to leave a legacy. They want to ensure the business they built and nurtured will thrive and continue to support the employees and enhance the community.