CommonShares is a business succession platform that purchases Canadian companies from retiring owners and transitions them to employee ownership over a 20-year period, ensuring fair market value for sellers. This approach addresses the challenge of business continuity by empowering employees with equity, thereby fostering community stability and rewarding those who contribute to the company's success.
Funding
Funding not disclosed
Founders
Product
Problem
Many Canadian business owners face challenges in succession planning when they retire, struggling to find suitable buyers who will maintain the company's values and ensure its continued operation within the community. Employees often lack the capital to purchase the business themselves, and external buyers may not prioritize the well-being of the existing workforce.
Solution
CommonShares acquires Canadian businesses from retiring owners and transitions them to employee ownership over a 20-year period. This model ensures owners receive fair market value for their business while empowering employees with equity, fostering long-term commitment and community stability. CommonShares provides the acquired businesses with resources, transition plans, operating processes, training, technology, advisors, and a peer network to support their continued success under employee ownership. Employees receive 10% of the company's equity on Day 1, with a transition to majority employee ownership over 20 years, earned through service without requiring any purchase from the employees.
Target Audience
The primary target audience includes retiring Canadian business owners seeking a succession plan that ensures fair value, protects their legacy, and rewards their employees, as well as experienced supervisors looking to lead a company.
Features
- Acquisition of up to 100% of the company at fair market value.
- Transition to majority employee ownership over a 20-year period.
- Employees receive 10% equity on day one, earned through service.
- Provision of transition leadership and support with transition plans.
- Implementation of standardized operating processes, training, and technology.
- Access to a network of advisors and peer companies.