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> What about the monetary value of the company, do the employees buy it (probably too expensive, cheaper for the employees to shut it down and form a new compan
by mygo 8y ago
> What about the monetary value of the company, do the employees buy it (probably too expensive, cheaper for the employees to shut it down and form a new company with the same people) or is it usual for the founders to give away the companies?
It’s not unusual for employees to not have enough money to buy shares outright, which is usually why business owners don’t even consider this type of arrangement. However the good thing is that these arrangements are usually structured in such a manner that the employees gain ownership via transactions from future earnings. So founders aren’t giving anything away.