Private equity is devouring the economy as boomer entrepreneurs exit—but a new approach to employee ownership can change that
==========
Private equity roll-up mergers are growing rapidly as baby boomer entrepreneurs seek to retire; Private equity companies are acquiring private companies in fragmented industries with insufficient succession planning; Private equity companies lack expertise in specific industries and running a company; A civil engineering company in Wisconsin made over 20 acquisitions without private equity involvement by implementing an Employee Stock Ownership Program (ESOP) and fostering common stock ownership among employees; The valuation of the civil engineering company surged more than sixfold in the last five years; The alternative approach to private equity roll-ups is becoming known as 'rewarding roll-ups'; Broad awareness and adoption of this approach are limited but growing quickly
#PrivateEquity #EmployeeOwnership #BusinessSuccessionPlanning #Esop #RewardingRollups
https://fortune.com/2024/07/24/private-equity-devouring-economy-boomer-entrepreneurs-exit-employee-ownership-labor-finance-leadership/
Fortune /
npub1v7…9v0r4
2024-07-24 15:04:52
Author Public Key
npub1v7hvaa8pv7g92sr6na55dtzaxmrrsgddxkhst3e8atw4nxusm37sg9v0r4Published at
2024-07-24 15:04:52Event JSON
{
"id": "356f668b9cd53196812ae7b089e8fe617f89411b4584c66f30413a11dcc483ae",
"pubkey": "67aecef4e1679055407a9f6946ac5d36c63821ad35af05c727eadd599b90dc7d",
"created_at": 1721833492,
"kind": 1,
"tags": [],
"content": "Private equity is devouring the economy as boomer entrepreneurs exit—but a new approach to employee ownership can change that\n==========\n\nPrivate equity roll-up mergers are growing rapidly as baby boomer entrepreneurs seek to retire; Private equity companies are acquiring private companies in fragmented industries with insufficient succession planning; Private equity companies lack expertise in specific industries and running a company; A civil engineering company in Wisconsin made over 20 acquisitions without private equity involvement by implementing an Employee Stock Ownership Program (ESOP) and fostering common stock ownership among employees; The valuation of the civil engineering company surged more than sixfold in the last five years; The alternative approach to private equity roll-ups is becoming known as 'rewarding roll-ups'; Broad awareness and adoption of this approach are limited but growing quickly\n\n#PrivateEquity #EmployeeOwnership #BusinessSuccessionPlanning #Esop #RewardingRollups\n\nhttps://fortune.com/2024/07/24/private-equity-devouring-economy-boomer-entrepreneurs-exit-employee-ownership-labor-finance-leadership/",
"sig": "040cf264fe70fd6bcd7fc42a1363bafeb70ceacf0ca2d112bea33e138d46dd59d25f6a0f78998e906b910d19c1eeaeff6ea902bf3cec0ef15167fe8b1b79da76"
}