Optimizing for the benefits of EO post-transaction in order to create and reify ownership culture with practices such as OBM

A unionized worker co-op is a business governed and owned by its workers with the distinctive features that it uses the collective bargaining process to determine pay, benefits, etc. for its workers, and is connected to the larger union movement.

FMV is the price a business would sell for on the open market with the following assumptions: Buyer and seller (1) are reasonably knowledgeable about the business (2) are behaving in their own best interests (3) free of undue pressure (4) given a reasonable period for completion

Specific forms of communication to employee owners by sponsoring companies that may be organized by a Communications Committee, and which often are used to educate employees about the rights and benefits of ownership

Refers to any special accounting considerations for EO companies

Refers to the relative complexity of in different types of EO sales, e.g., ESOP vs EOT or worker co-op.

IRC (1986) section 1042 allows an owner of a closely-held C corp to defer or potentially eliminate capital gains taxation on “qualified securities” they sell to an ESOP if the seller reinvests the sale proceeds into “qualified replacement property” (QRP).

An idea, practice, or material artifact perceived as new by the relevant unit of adoption, e.g., a company

Fiduciary liability insurance protects an organization's fiduciaries (such as directors, officers, and trustees) against claims made by employees or other stakeholders for alleged breaches of fiduciary duty.

Myths about EO companies which may be held by the general public, opinion leaders, influencers, SMB owners, advisors, etc.

Employee Ownership Centers (also called Centers of Employee Ownership) are state-based centers that provide technical assistance, and advocacy for EO, and belong to a national network called EOX (Employee Ownership Expansion Network)

A strategic buyer is a company that acquires another company in the same industry to capture synergies, and believes that the two companies combined will be greater than the sum of their separate individual parts and aims to integrate the purchased entity

An EO trustee (ESOP or EOT) represents the participants in the negotiation to sell the company to the EO, and manages annual valuations and other duties, taking care of all the work and oversight of the EO on behalf of the participants.

Broad-based employee ownership gives all employees who meet basic criteria the opportunity to become employee-owners.

SBDCs are locations where SBA employees offer technical assistance to small business owners

The types of decisions which corporate governors (directors) may make on behalf of owners such as officer appointments, executive compensation, and dividend policy, or call for certain social or environmental concerns to be prioritized.

In an equity/stock sale, the buyer purchases equity in the business (or in cases of 100% of the equity, the entity itself) and thus also includes the liabilities of the company (therefore typically seller preferred).

Anyone who makes decisions for the plan (whether ESOP or EOT), causes someone to make a decision about the plan, or, in some cases, provides advice to someone making decisions about the plan

A distribution of profits from a cooperative to its members or investors, based on their use of the co-op's services or product purchases.

Any unique taxation considerations for EO companies, e.g., taking a 1042 capital gains tax deferral

The Perpetual Purpose Trust (PPT) is a non-charitable trust that is established for the benefit of a purpose rather than a person. An Employee Ownership Trust (EOT) is an example of a PPT.

When a plan is terminated, all participants become fully vested and distributions must begin as soon as administratively feasible, generally within a year of the plan's termination.

The departure of an executive and the recruitment, hiring, and installation of a new executive

The operating of an employee ownership plan, and all requirements associated, whether by law or by plan document.

Court cases which pertain to EO companies, such as that brought by EBSA within the DOL against ESOP companies.

Compensation for key executives that attract, motivate, and retain the right people, while aligning executive goals with the goals of the company.

A think tank, or policy institute, is an organization that conducts research and analysis on public policy issues, providing evidence-based recommendations to inform and influence decision-makers and public discourse.

409A plans are a type of non-qualified deferred compensation plan for compensation that has been earned by an employee but not yet received from their employer. Because the ownership of the compensation—which may be monetary or otherwise—has not been transferred to the employee, it is not yet part of the employee's earned income and is not counted as taxable income

Est. 1953, SBA is the only cabinet-level federal agency fully dedicated to small business and provides counseling, capital, and contracting expertise as the nation’s only go-to resource and voice for small businesses.

An SOP is a set of instructions used to train employees to complete a task; SOP's are the foundation of building a business that can thrive without the creator of those procedures, which gives those individuals more freedom to work strategically.