Moving Forward in Phases
At the Beyster Institute, our process for creating an employee ownership program consists of four phases:

Phase One - the Outlines of Your Plan. In this phase we will take you from exploring employee ownership possibilities to the development of a concrete concept for your program. We'll help you create a basic outline that defines the parameters of the program, with preliminary answers to the key issues of plan development.

Phase Two - A Finished Plan Design. The next step is to complete a detailed planning process. It's a matter of working from concept to blueprint. We'll take the lead in reviewing financial data, payroll numbers, tax considerations, securities laws and much more. The end product of this process takes the form of a Beyster Institute Employee Ownership Strategic Plan. This consists of:

• The Strategic Analysis: This report presents an analysis of the issues that must be addressed in designing an effective program for your company. We evaluate the alternatives and, based on our wealth of experience in this area, recommend answers that are geared to match your unique circumstances.
• The Forecasting Model: This custom-developed software tool will project the effects of the proposed equity compensation arrangement on the company, its current owners and the participating employees. Using actual data from your company, the Model shows the projected effects of specific equity award over the next five years.
• The Equity Plan Blueprint: This part of our report serves as a checklist that summarizes our recommendations to you regarding the features of your proposed plan and the provisions that should be written into the associated legal documents.

Phase Three - Implementation. With a detailed program blueprint in hand, the next step is to bring the program to life! We will bring in qualified professional specialists as needed for the job. Depending on the nature of the plan, implementation may require

• An attorney: In nearly all cases, an attorney will be retained to prepare the appropriate legal documentation and provide other legal services.
• An appraiser: In some cases, the services of a professional business appraiser, who can provide an expert opinion on the actual market value of the company, may be desirable.
• An accountant: Occasionally, the implementation of an employee ownership program may require the resolution of complex accounting issues.
• A plan administration specialist: All employee ownership programs will require some record keeping and administration. For more complex programs, it may warrant outsourcing these tasks to a professional.

Beyster Institute consultants can bring in well qualified service providers where needed, and will coordinate and oversee their activities to assure that the work is efficiently delivered and faithfully implements the program that we have helped you design. This phase will conclude with the formal approval and adoption of the plan documents by your board of directors.

Phase Four - Getting Employees on Board. Yes, an employee ownership plan can galvanize a company's employees and generate motivation and effort that can take business performance to a new level. But it won't happen if employees don't have a clear understanding of how the program gives them a stake in the company's success  – and what they can do to contribute to that success. It's safe to say that a quick meeting or memo won't do the job. Raising employees' level of understanding in this area is the last mile to successfully completing the journey. We can help.

To begin a dialogue with us, please fill out our Pre-consulting Questionnaire, which will provide us with some basic information about your company. One of our experts will be in touch with you shortly.

Back

Print this page