Conversion Brochure (OEOC)
Author(s):
Ohio Employee Ownership Center
A 2-page brochure with basic information about converting your business to a worker cooperaive.
More Info for Conversions
Are you a business owner considering transitioning your business to a worker cooperative? Or an employee seeking information about how to purchase an existing business and convert to a worker cooperative?
Below are resources from our Resource Library about business conversion. And visit our Conversion Projects page to learn more about how the Institute supports owners and employees during the conversion process.
Resources for Conversions
Small Business Ownership Succession: The Cooperative Solution
Author(s):
Northcountry Cooperative Foundation
A sale to employees can provide an owner with significant tax breaks. Because of the IRC §1042 Capital Gains Rollover, business owners who sell at least 30% of the stock in their
C-Corporation to an employee-owned cooperative can roll over the proceeds from the sale into qualified replacement securities and defer payment of any capital gains tax indefinitely.
Conversions Timeline
Year:
2013
Gant chart outlining the phases a business goes through during transition to a cooperative.
Decisions in the Process of Business Transition (Who Decides What?)
Year:
2013
Before a cooperative transition process can get started, the selling owner needs to make some decisions about how to structure the process, specifically she needs to clearly define who has decision-making power in the process: herself, the transition committee, the likely coop members, and the whole group. This chart outlines who decides what.
Introduction to Worker Cooperative Business Transition Planning
Year:
2013
This presentation goes over the steps of the cooperative transition process and outlines benefits, challegnes, and key questions of a business transition.
Transitioning to Worker Ownership 1.1
Year:
2013
What does it mean to be an owner? How do you transition from Owner to Worker Owners?
First Response: Save the Jobs (presentation)
Author(s):
Melissa Hoover
Year:
2010
A presentation on how employees can buy-out a company and convert to a worker cooperative.
The 1042 roll-over cooperative in practice
Author(s):
John Logue
Year:
2006
This case study disccuses the 1042 rollover of Select Machines and the employee purchase of the company from its retiring owners. It compares and contrasts the creation of ESOPs with that of cooperatives using the 1042 rollover provision and provides an overview of a co-op business succession model
Projecting the Long-Term Consequences of ESOP vs. Co-op Conversion of a Firm on Employee Benefits and Company Cash
Author(s):
Jaques Kaswan
Year:
1992
This report provides a detailed examination of the benefits received by departing employees of a company converted to 100% employee ownership either as an ESOP or a Co-op over a 15 year period. It also studies the net cash retained by the ESOP or Co-op firm over the same time-span. It discusss the some theoretical and practical implications related to the two forms of employee ownership.