The Generation Game - why it’s no drama

Starting and growing a business is a daunting task. So much so that it’s become the norm to see programmes of support targeting early-stage entrepreneurs. We recognise the value business brings to the region and how success sustains economic opportunities so it’s right therefore, that more entrepreneurs are encouraged to make this journey.

Looking at the other end of the scale, things are quite different. Finding support on how to exit a business can be tricky. For some reason, it’s not a conversation we seem willing to discuss beyond the trusted confines of accountancy or legal teams.

This can be more challenging when it comes to family-owned businesses and especially for those with no obvious succession plans in place. As one of the directors of a second-generation family business, I often think about the fact there’s no guarantee a member of my family’s third generation will be willing to take over if, and when, we decide to move on.

HBO’s drama series Succession did little to abate the fears of any CEO drawing up his or her exit strategy. Great entertainment, yes, but it will undoubtedly have intensified fears that stepping aside isn’t always a straightforward move. So, what can be done to support founders in a similar position?

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Last month I was proud to support the establishment of Employee Ownership Ireland, a new business alliance, tasked with expanding the awareness of EOTs, not as an substitute to a sell off or family trade off, but as a viable alternative.

The board, chaired by Karen Maguire, founder of Relinea, are on a mission to create 10,000 employee owners in Northern Ireland by 2030 and to unlock the economic advantages this approach can bring.

Research has shown that the benefits of employee ownership are far-reaching. Businesses see improved performance, greater job satisfaction and financial rewards, and society as a whole benefits from a more resilient economy, as the longevity of indigenous companies is secured.

The board embarked on a series of roadshow events visiting business leaders and advisers in Cookstown, Derry, Newry and Belfast. Thankfully, the reception we received was positive and there seems to be a genuine appetite to learn more about this model.

Already we have successful EOTs in operation throughout Northern Ireland, many of whom participated in our roadshow events and have joined the board of EOI.

Firms like Relinea, People 1st, White Ink Architects and Adman are a fantastic demonstration of the movement and, I’m pleased to report, have all experienced increased employee engagement since becoming employee owned.

Gauging levels of interest is one thing but we’re also keen that these events ignite action. Our organisation, the DLD Fund, has pledged to support 20 fully funded feasibility studies for businesses here who are considering exploring this option.

These studies will access whether an EOT is the right exit strategy for you, pair you with a trusted advisor, and explain the various ownership structures. They present a significant package of support and an opportunity to learn from other business leaders in a similar position. Applications can be made via our website, www.employeeownershipireland.com which is also a great place to start if you are curious about employee ownership.

Only individual business leaders will know when it’s the right time to step down, but we can guide you to do this in a way that maintains the integrity of the firm and continues to support your local community. Employee Ownership is the key to making a success of your succession plan so why not join us and become a member of EOI today.

• Aidan O’Neill is a board member at Employee Ownership Ireland