Leadership Across the Globe
Women for Women International is an organization dedicated to helping women in war-torn countries deal with the immediate effects of war and conflict.
The Kirwin Group is proud to support this mission which aims to create networks and safety nets for women where they can learn valuable job skills and become aware of their economic rights, which in turn gives them opportunities to contribute to their family as well as their community.
Through donations and sponsorship, women are given a degree of stability and they may begin building the foundation for their life as a survivor. If you would like more information about this organization click here. |
How to Protect Your Business Legacy
Perry Phillips, President of ESOP Builders Inc. helps business owners create succession planning with tangible rewards for both owners and employees. The Kirwin Group is very proud to partner with ESOP Builders. Below is an article written about the value ESOPs can bring to your organization.
It may come as a shock to discover that one year after selling their companies almost 75% of private business owners said they regretted the decision. After years of building and managing their businesses you would think these owners should be happy, especially if they banked a considerable amount of money from the sale.
This is not always so, says Perry Phillips, President of ESOP Builders Inc., which specializes in creating transition plans for business owners who want to transfer ownership of their companies to employees. "There are a number of reasons why an owner might be unhappy with the sale of their business, but it really comes down to not planning well enough," says Phillips. "Only 35% of owners have a transition plan in place and most are not even sure how to begin the process."
For many business owners it's not just about how much they can get for their business; it's about safeguarding their legacy. A privately-held company is a reflection of its owner. Everything from business structure to company culture stems from how the owner has decided to run the business. Many owners want to leave this legacy behind.
There are an estimated 1.2 million businesses in Canada and about half of them are owned by Boomers who are now in their 50s or early 60s, a demographic group that has always had an unprecedented impact on society. As they near retirement, their influence will be felt again as they transition or sell their companies in record numbers.
"Around 71% of individuals who own a small or medium-size business plan to retire in the next 10 years or so," notes Phillips. "Estimates are that $1.3 trillion dollars in wealth will be transitioned in Canada during that time. Even so, many of these business owners haven't even begun to plan for their exit."
This is something Phillips would like to help them with if they are inclined toward Employee Share Ownership Plans (ESOPs). Phillips' company was one of the first in Canada to offer specialized service in developing and implementing ESOP's, and he has worked with hundreds of clients, from companies with only 10 employees to those with over 1,000. He is also the author of Employee Share Ownership Plans: How to Design and Implement an ESOP in Canada.
ESOPs also provide an alternative to leaving a business to family members who may run it into the ground. Research shows that only 30% of companies sold to family members actually succeed and that selling to another company has only a 50% success rate. Buyers often stamp out the distinctive cultural elements that made a company unique, and it becomes an indistinguishable part of a larger corporate entity.
Phillips advocates gradual, planned transitions. He has seen the mistakes made when owners hand over their companies too quickly, with haphazard and poorly structured transition plans.
The key, says Phillips, is that ESOPs help safeguard the legacy of business owners, and provide an exit strategy that allows them to set a timetable for a successful retirement.
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