Employee Ownership: A Strategy for Succession and Resiliency
Only 40% of small businesses have a succession plan in place. According to Project Equity, 6 out of 10 business owners plan to sell in the next decade. Small businesses make up 99.9% of all firms and provide 47.1% of all jobs in the United States. If you are a small business owner, it is crucial to have a succession plan in place. However, business owners believe that a family member will take over the business once they are ready to retire or in the event they pass away.
This webinar will provide an opportunity to learn more about the Employee Stock Ownership Plan (ESOP) business model and how it can assist with succession planning. Guenevere Abernathy from the North Carolina Employee Ownership Center will discuss the importance and process of succession planning. Robert Hilton, ASA, managing director at South Park Advisors LLC, will provide his expertise on exit planning and valuations. Ken Tyner, RRC, PE, executive vice president of administration at REI Engineers Inc., will discuss his experience of being the internal trustee at REI as his organization transitioned to an ESOP.
1. Provide different options for exiting a privately held business.
2. Discuss the benefits of an Employee Stock Ownership Plan (ESOP) and how they can help recruit and retain employees as well as build a culture of participation.
3. Review employee ownership structures.
4. Assess how one organization within the building enclosure industry became an ESOP.
5. Develop a better understanding of the importance of succession planning.
Abernathy is a values-driven business leader with expertise in social entrepreneurship, business development, strategic planning, and raising capital. She was recognized by Walter magazine’s “Women Inspiring Innovation” and a finalist for the BCBS Health Innovation Challenge. Her work has been covered by Durham Magazine, Triangle Business Journal, and Our State magazine.
Hilton is a managing director at South Park Advisors, an independent business valuation firm that caters to business owners, attorneys, accountants, ESOP trustees, commercial bankers, trust departments, insurance agents, and financial planners. He has more than 20 years of experience providing valuation services to both private and public companies ranging in size from less than $1 million to $1 billion in sales.
Ken Tyner, RRC, PE
Tyner is the executive vice president of administration at REI Engineers Inc., an engineering firm headquartered in Raleigh, North Carolina, specializing in building enclosures and paving. Tyner began employment at REI in 2005 as a senior project engineer. When REI transitioned to an employee-owned company in 2008, he served as an internal trustee for the ESOP from the buyout until 2011. Since then, he has been responsible for the overall administration of the firm, including finances and employee benefits.