Press Release to Western Suburbs (Sydney) Newspapers: 22nd October, 2009.
Employee Ownership to Change the Way We Do Business.
"When asked what is the Australian Employee Buyout Centre (AEBC) all about, AEBC President, Alan Greig answered “The AEBC’s mission is to preserve, protect and enhance jobs through employee ownership”.
The AEBC has been initiated by the Australian Employee Ownership Association (AEOA www.aeoa.org.au ) to fulfil a Federal Government “Jobs Fund” project to assist businesses in Western Sydney become “all employee” owned enterprises as a means of job saving or combating job shedding.
The AEBC is seeking local businesses that could be suitable for employee ownership. The AEBC is interested in hearing from owners or employees of businesses that:
• have cash flow problems and might face closure without employee equity participation in a turnaround process
• have no succession plan and might close when the owner retires should a buyer for the business not be found ;
• are subsidiaries of larger companies which are scheduled to be sold or closed.
Employee equity participation through an “all employee” Employee Share Ownership Trust can result in increased productivity, sales, profitability and employee satisfaction. This is indicated by many studies throughout the world on businesses where broad-based employee ownership has been introduced. With both management and employees taking responsibility for the business, a business in trouble can be turned around and put onto a path to expansion - with all the jobs in it being saved and new ones being created.
In addition, the AEBC believes that communities can retain local employment and wealth-generating assets in their local economies though the initiation of employee owned businesses.
By contacting the AEBC you can have your business assessed as to whether it would be suitable for an employee buyout or buy-in. If it is considered feasible, the AEBC would then work with you to implement an employee equity participation plan. The AEBC has extensive experience in both employee equity participation and employee buyouts and can provide access to sources of funding, corporate re-structuring and the transition training required to develop an employee ownership culture.
Take a look at your business; could your business be an opportunity for the employees to become owners? If so have a discussion with Michael on 0433 989 477."
For more information on the strategy and activities of the AEBC, see the web-site of the Australian Employee Buyout Centre Ltd. and the brochure "Securing the Future: Saving Jobs"
For information on the Federal "Jobs Fund" funding the AEOA received to set up the Centre, see the Federal Minister's (the Hon Chris Bowen, MP) Media Release.
For a comprehensive "how to" guide on employee buyouts - including case studies -please see the AEOA's "Employee Buyouts Handbook".
For additional resources and stories on employee buyouts, please see the AEOA discussion forum "Employee Buyouts" .
For how the "Leveraged ESOP" might work in an employee buyout situation, please see our "Private Company ESOPs" page.
