Chris Fredericks is the President of TVF, a leading international fabric supplier. On today’s show, Chris dives into the lessons he’s learned over the past decade of leading TVF through ESOP implementation, and the impact it’s had on employee engagement.
Listen in as Chris shares the steps to determine if an ESOP can help your organization.
Truth You Can Act On:
- Align yourself with a group of trusted advisors who are experts in all business areas to support the ESOP consideration and implementation process.
- [00:19:50] I think having good advisors who can help support your process and think through what you’re wanting to achieve, I think can help unearth whether an ESOP it should be on the table or not. [00:20:00]
- Get to know the difference between partial ESOPs and full ESOPs.
- [00:09:37] So a full ESOP transition would be one where 100% of the company shares are sold to the ESOP in a single transaction. [00:09:47]
- [00:10:12] What’s so interesting about a partial ESOP is they can be part of a a step by step process to become a hundred percent employee owned. Eventually if a seller wants to have a longer term process in place to accomplish that, but alternatively, they can also just be remain a minority ESOP where the purpose is to introduce an element of employee ownership into a company. [00:10:39]
- Start communication with all employees as early as possible to tee up successful adoption. Allow employees to be part of the consideration process so they can truly take ownership of their role in both their job description and the culture.
- [00:13:29] to be a true ownership culture and ESOP culture. I think you have to involve people in earlier in the process than maybe one would otherwise. [00:13:38]
- [00:16:46] just trying to keep everyone in the loop on a consistent basis about what’s going on and in the business, or on a day to day basis has been really helpful for us. [00:16:56]
- Know your endgame with business ownership and future transition. The ESOP can play a big role in helping you accomplish your ideal scenario.
- [00:06:50] do you want to do a partial or a full ESOP as an end result? Or, you know, another question is what does the owner want their role to be post-transaction cause there’s different options around those things. So that’s the first step is just for the owner and the ownership team to figure out what they’re wanting to accomplish. [00:07:12]
Nikki’s Book Recommendations:
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