Development / Financing

Selling Business Shares to Employees

Selling shares in your business is a good way to raise capital to help your company to expand. Lots of businesses will make the decision to sell some of these share to their employees, allowing them to come on board as part owners in the company. Here are some things to think about if you’re considering this:

  • How much are your shares worth? It’s important to know this before you enter into any discussions, so that you’re aware of what you’re going to be selling for.
  • Who would make a good business partner? Not everyone would be a good, productive choice for your business. You will need to think carefully about how to approach this issue.
  • How many people do you want to be involved? Have an idea in mind beforehand so that you know what you’re aiming for.
  • Will the changes have any implications for the running of the business? Consider the ways in which people with part shares would contribute to the business as a whole. Once they have shares, they have much more of a say, so you need to know that you’re able to work well together.

Author

Andrew@capplan.co.uk