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How about whoever starts the business owns the business. An "employee" is one who comes in AFTER the owner has brought the business into existence. Let the "employee" start his own business if it's so damn easy.
How about whoever starts the business owns the business. An "employee" is one who comes in AFTER the owner has brought the business into existence. Let the "employee" start his own business if it's so damn easy.
These typically are businesses going under.
The employees are buying in rather than taking all their wage.
I think all companies and firms should be ran this way. What do you think of it?
A lot are.
"The National Center for Employee Ownership (NCEO) estimates that from 1985 through 1993, over 750 companies were established through selling a company or through corporate divestitures to newly created companies that are at least 25% ESOP-owned. A few examples of these transactions follow:
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In 1987, the employees of Avis borrowed $1.7 billion to buy their company from Wesray Capital Corporation.
In 1989, American Maize Products Co., a publicly traded conglomerate, sold 100% of a chain of home and building supply centers to the chain’s employees. Spread over rural Pennsylvania, the chain has $27 million in annual sales.
In 1990, PPG Industries (formerly Pittsburgh Plate and Glass) sold 100% of a PPG unit with $14 million in annual sales to the unit’s employees. The unit makes paint and wire brushes.
In 1990, GenCorp, Inc. (formerly General Tire) sold 100% of an automobile vinyl plant, which had $43 million in annual revenues and the largest market share in its industry, to the plant’s employees.
In 1990, the employees of Erie Forge and Steel Inc. teamed up with ACS to buy a majority of their company from National Forge Company. Erie, which markets high alloy steel and forges ship propeller shafts, has $65 million in annual sales.
In 1992, Union Carbide sold 55% of its Midwest industrial bottled gas business to the unit’s employees. The unit had $50 million in annual sales and is a leading supplier in its market.
In 1992, an ESOP at National Underwriter Co. borrowed $32 million to buy the company from its existing owners.
In 1993, Northwest Airlines agreed to establish an ESOP with $886 million of convertible preferred stock for all its employees in return for substantial concessions.
In 1994, the employees of Good Stuff Food Company in Los Angeles, a bakery with $30 million in sales, teamed up with ACS to purchase their company out of bankruptcy.
In 1995, the 450 employees of a subsidiary of Penn Central teamed up with ACS to purchase this manufacturer of aerial lift trucks with $70 million in sales from the owner in a transaction that provided the employees majority ownership of Mobile Tool International located in Denver, Colorado.
In 1995, after previously selling one of his companies to its employees, the owner of National Forge Company sold 78% of his remaining company, a rural Pennsylvania forger with $70 million in sales, to his employees in a $45 million transaction.
In 1996, the U.S. Office of Personnel Management sold its background investigative unit to its employees in the first ever majority ESOP privatization in the U.S. US Investigations Services is now a 100% employee-owned independent company with $65 million in sales.
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