When it comes to business and ownership models, thinking outside the box can have some big benefits. This is undoubtedly true of Employee Ownership, which was one of the major selling points of Centra Windows when it came to their recent acquisition of Supreme Windows Calgary. There are numerous advantages to this form of ownership, and when it comes to the future of your company and succession planning, it’s one of the best routes you can take. Here are three reasons why.
Preserve a Legacy
Caption: Why Supreme Windows chose an Employee-Owned business to protect their legacy.
When the ownership team at Supreme Windows were considering bids for the company, Employee Ownership was a major factor and gave them confidence that their hard work would be respected and built upon. They pinpoint that as one of the reasons they saw Centra as the right choice to take over.
It takes a lot of time and effort—along with blood, sweat, and tears—to build a successful company. This is true of owners and the team at large. When retirement rolls around, stepping away is understandably difficult. When they move on, good leaders want the best for their company and staff. Employee Ownership is a highly effective way of ensuring a business continues to flourish.
Shifting to this ownership model can help a business and a legacy live forever and gives peace of mind that the employees who helped make the company what it is will be taken care of. The ownership group, made up of the majority of the company’s workforce, is not going to retire or leave at the same time. It will be refreshed on a fairly regular basis (though the leadership doesn’t have to be), and the other benefits of Employee Ownership mean the company is strongly positioned to see solid growth.
When it comes to Employee Ownership, one of the biggest benefits is employee mentality and engagement. They go above and beyond and do everything in their power to build the business and its reputation because they see a direct benefit from its success. Employees are financially invested into the business and when the company itself does well, they and their families do well. This is easily measured as they see their investment grow year-over-year and it also reduces turnover and the costs associated with training new employees.
This directly impacts the customer experience. Everyone they deal with is an owner with an interest in seeing the company succeed. This is a great way to improve a company’s reputation and elevate their brand, putting them in an excellent position to grow and scale the business. It also helps boost profits, as well as cutting down on mistakes and subsequent reimbursement to customers. In Centra’s case, this is all evidenced by their recent success and a 78.5% increase in share price since the Employee Ownership group bought out their founder a couple of years ago. This succession strategy ensures the future of every employee is secure.
Fuel Employee Prosperity
Since Centra Windows became Employee Owned, they have seen consistent, impressive growth, and there are no signs of it slowing. The company strives forward collectively, with purpose and hunger. They’ve received accolades, including Canada’s Most Admired Corporate Culture and Canada’s Best Managed Companies Award. There was no doubt that Employee Ownership was the right model for Centra Windows moving forward, and the increased success and resiliency have only served to prove it.
It helped the company win out when it came to the acquisition of Supreme Windows Calgary, but it also made the process itself smoother once the deal had closed. Such a move can be worrying to the staff of the purchased company. But, Centra’s ownership model gave the employees of their new Albertan operation assurance that they will be well taken care of, and that they immediately have a stake in something bigger and more prosperous. The transparency and added tax advantages, such as the capital gains exemption, are other positives which attract employees themselves to this ownership model.
When it comes time to step down and move on from your business, consider a company that utilizes Employee Ownership and all the advantages it brings to take over and secure your legacy. You can even get the ball rolling now and start reaping the benefits yourself. Learn more about Employee Ownership here!