After contacting the AEBC regarding a possible employee buyout/buy-in, the AEBC initiates an assessment process to ascertain whether employee ownership is suitable as an option. This process involves the assessment of the following:
- Leadership and financials –within the workforce are there employees who can run the business and is the business financially sound - or could be made financially sound.
- Market and suppliers – businesses with a good market for their products and multiple suppliers are preferred
- Capital needs – is the business appropriately capitalised or is there a need for re-capitalisation.
- Workforce – the skills and expertise required to run the business and whether the workforce aspires to ownership.
- Time – an employee buyout/buy-in takes time, about three months on average.
- Training and preparation – the training needs of the workforce are analysed and the required training prepared for implementation as part of the transition to an employee owned enterprise.
Should the business be considered appropriate for an employee buyout/buy-in, the AEBC will assist with:
- Establishing a buyout/buy-in team.
- Valuing the business using an independent valuation provider.
- Preparing a business plan.
- Raising finance.
- Structuring the buyout/buy-in.
- Negotiating with the current owners.
- Providing assistance during the first 90 days.
- Providing access to ongoing mentoring and management advice.
Copyright 2009 Australian Employee Buyout Centre Limited ACN:139 700 691 |
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