Employee Ownership M&A Deals Shocking Average Americans

It’s somewhat odd. One of the largest private equity (PE) firms in the world, KKR is making waves for selling companies with employee ownership. The initiative is led by Peter Stavros , a KKR managing partner and the founder of Ownership Works, a non-profit rallying other PE firms around their novel investment structure for acquiring industrial companies (non-technology).

The recent $3B sale of C.H.I. Overhead Doors , is KKRs biggest return on investment to date, 10X.? The employees owned somewhere between 10%-20% of the company. 400 employees received on avg. $175,000 checks at the sale. Some long tenured truck drivers received over $700,000 and will continue to work there.

This is pretty amazing. Life Changing for most. Watch below.

Arthur, Illinois, a small rural town (2,000+) is the home of C.H.I. The town will see millions enter their community. The payouts to the employees will be driven back into the local economy. I can only imagine what comes next. This is the polar opposite of companies shutting down factories and small towns becoming ghost towns.

On the other side of the spectrum, Clif Bar , one of the most popular health bars in America recently sold its company to Mondelez International for $2.9B cash + additional cash based on the performance over the next 2-years. Clif Bar is an ESOP and the employees own 20% of the company. The 1,200 employees will receive an estimated $580M in the deal. That’s on average almost $500,000 per employee.

These 2 M&A deals will fundamentally change the economic culture within their local communities.

Today our country is pitted against each other. Rich vs. Poor. The 1% vs. the 99%. Having the opportunity to become wealthier and earn more money not only helps everyone, it leads to a more robust economy.

The bottom half of American earners are mainly women and minorities, making $12-$20 an hour. How do they participate in the American Capitalistic system with an equitable chance?

Paying employees more than $30 an hour will just not work in most small businesses which is the majority of businesses in America. Operationally many small businesses would lose money. The labor costs are too high.

Equity isn’t an operating expense like a wage or salary. Shareholders equity sits on the balance sheet, not on the P&L. Equity can be earned just like a salary or wage. Equity can be shared as a benefit that the employees don’t pay for, as an ongoing dividend paid out quarterly or annually to your employees. In a M&A deal like C.H.I. and Clif Bar, it can be paid out on an acquisition of the company.

Both acquisitions show that wealth distribution can be facilitated, not?necessarily through wage increases or unsustainable monetary structures. We execute it through widespread equity ownership in American companies.

Entrepreneurs, owners and companies can help make America better and save American Capitalism by making your employees owners.

I am interested in building an ownership-based economy in America and the world. I can be reached via WhatsApp/Cell# 1-207-460-0740 or email: [email protected]