Ivan Boesky could tell you. But then would you want to listen given the way he is today?
Get mad at me but this smells more fishy, than a pizza anchovie.
Looks like they are doing well.
Well, I heard somewhere that it was a good thing for the workers to control the means of production. Now, who said that?
Communists rule taking advantage of rules of capitalism.
That’s very nice for them.
In the “old days” it would have simply been called a “partnership.”
All good if you have good employees. This situation reminds me of Mina’s World coffee shop in Philadelphia which dd not turn out so well.
My brother sold his business to his employees when he retired. They were not professional engineers like him, so he redirected their business plan to projects they were competent to do. The business still exists, more than ten years later, although there have been ups and downs.
I like this better than passing a business down to kids who don’t want it and can’t do it.
“What is a “leveraged buyout”?”
They bought him out, but with someone else’s money. So essentially the bank owns their shares, until they finish paying off the bank.
Ivan Boesky could tell you. But then would you want to listen given the way he is today?
“leveraged buyout”
Taking out a loan to buy something. Also commonly called ‘credit’.
The owner sold the company to the employees but they took out a loan, probably with him, to buy it. Often, these employee buyouts are an ESOP, employee stock ownership plan. The owner didn’t really loan any money, the employees simply go into debt to own the company, but they immediately start collecting profits, if any.
Although it is fairly poorly written this sounds a bit like an ESOP. Employee Stock Ownership Plans have a way of making businesses very successful and, depending on the nature of the business, making the employee/owners lots of money in the long term. Good for them.
I’ve ate there.
I don’t remember it being something worth going again.
Bookmark
Dennis: I told you, we’re an anarcho-syndicalist commune. We take it in turns to act as sort of executive officer for the week…
King Arthur: Yes…
Dennis: …but all the decisions of that officer have to be ratified at a special bi-weekly meeting…
King Arthur: Yes I see…
Dennis: …by a simple majority in the case of purely internal affairs…
King Arthur: Be quiet!
Dennis: …but by a two thirds majority in the case of more…
King Arthur: Be quiet! I order you to be quiet!
 |   |
 | |
| Send FReepmail if you want on/off SVP list | |
| The List of Ping Lists | |
This guy makes it sound like he’s doing something for the community. He’s not. He’s making money by slowly selling his business to people who work for him. This is capitalism, no matter how much he wants to make it sound like they are holding hands singing kumbaya around a fire.
Should work....... for awhile. Wait until the employees want to retire or quit. Will other employees buy them out? Will they still receive “dividends” if they retire. Doubt if new employees get stock.
That just means they used credit to make the purchase. Which would probably be necessary if you want what’s basically a fast food place to be employee owned, cause fast food workers probably don’t have a heck of a lot of cash lying around. So they probably spun up an LLC, made all the employees owners of the LLC, and the LLC bought the place.
Plenty of employee owned businesses out there. It can be a bit complicated, but it isn’t new, and no more likely to be fishy than any other business model.
The business owner sold his risks to the workers, who cannot complain about wages because they are the ones deciding how successful the business should be.
It will likely fail.
“What is a “leveraged buyout”?”
the purchasing entity takes out a loan against the equity of a business that they are buying, pay the existing owner with the proceeds of the loan, and then pays back the loan with profits from the purchased business ...