APRIL 20, 2007
BRATTLEBORO, VT — Planning for ownership succession is an extremely important step, but one often avoided by business owners. One approach to such planning -- that of selling some or all of the business to the employees -- can have significant advantages over selling to an outsider.
This will be the subject of a short workshop to be offered by the Vermont Employee Ownership Center (VEOC), and co-sponsored by the Brattleboro Development Credit Corporation (BDCC), from 3 to 5 p.m. May 8 at the BDCC office, 76 Cotton Mill Hill in Brattleboro.
Succession planning tends to be a concern especially for smaller, family-owned or closely held companies, which makes it of special interest in Vermont where they are so prevalent. According to Don Jamison, the VEOC program director, “In addition to the potential tax advantages to the sellers, a sale to employees helps preserve jobs, protect local communities and strengthen the company.”
There are over 40 employee-owned companies in Vermont, according to the VEOC, including several in the Brattleboro area, such as Chroma Technology and the Trust Company of Vermont. Employee ownership can be structured in many different ways, and is used in a variety of situations, not just in handling business succession.
Topics to be covered include clarifying owners’ goals, an overview of ownership succession options, the pros and cons of different forms of employee ownership, and the key financial and other benefits of this approach. For registration information, contact the VEOC at 802-861-6611 or info@veoc.org.
The VEOC is a nonprofit organization, formed in 2001, dedicated to promoting and fostering employee ownership. Its goals are to broaden capital ownership, deepen employee participation, retain local ownership of businesses and the jobs they support, increase living standards for working families, and stabilize communities. The VEOC works directly with owners interested in selling their business to their employees, employee groups interested in purchasing a business, and entrepreneurs who wish to start a company with broadly-shared ownership.
BDCC is a private, nonprofit economic development organization that serves as a catalyst for industrial and commercial growth in Southeastern Vermont. Its primary objective is to create and retain a flourishing business community that supports vibrant fiscal activity, and improves the quality of life of all its residents. BDCC's services are available to start-up companies, growing companies, and global businesses alike in the region of Windham County and the towns of Readsboro, Searsburg, and Weston. Founded in 1954, BDCC owns and manages the Cotton Mill industrial park/incubator, the Act 250-approved Exit One Industrial Park, and the new Business Park at the former Book Press building. It is one of 12 Vermont Regional Development Corporations. BDCC can be reached at 802-257-7731 or bdcc@sover.net.