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Beyster Institute has experience and expertise in structuring, developing and implementing privatization-related employee ownership in such countries as South Africa, Egypt, Venezuela, and Russia, among others. We have helped restructure state-owned enterprises, performed feasibility studies, conducted government forums, and worked in-country to develop legislation supporting employee ownership (see clients and projects).
Employee share ownership can make privatization programs more politically acceptable by helping to ensure worker participation in the ownership of privatized assets. Most commonly, these programs are designed to provide employees with a minority ownership stake in partnership with other investors, though privatization transactions can sometimes result in companies becoming entirely employee-owned. Employee participation in ownership can often help overcome labor resistance to the privatization process and can even help attract investors who recognize the benefit of having employee-shareholders as partners. Employee groups may also represent a readily identifiable group of buyers for privatization sales.
Significant levels of employee ownership have been shown to have a positive impact on sales growth, employment growth, and overall corporate productivity. The challenge is to ensure that employee ownership plans are properly structured to ensure both the viability of the privatized enterprise and a long-term benefit to the employees.
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