Latest from Multi News Outlets

This venture-backed startup has quietly bought more than 80 mom-and-pop shops |

Online Press Release Service, White Label Press Release distribution, Press Release Distribution Service, Press Release.

Teamshares is a low-flying, Brooklyn-based startup with big ambitions to capitalize on an opportunity in plain sight: that of small businesses without a succession plan.

It’s not a small market. According to the U.S. Small Business Administration, small businesses represent 99.7% of U.S. employer firms and 64% of private-sector jobs. Meanwhile, just 15% or so of small business owners pass along their company to a family member, with many others simply closing up shop at some point.

With an aging population in the U.S., Teamshares is betting this market will grow even bigger, which is why since 2018, it has snapped up 84 small businesses from retiring owners. These owners like its pitch. Though Teamshares says that it sometimes pays below market price for a company, it installs a new president that it trains, and grants 10% of the business’s stock to its employees. Moreover, it promises to increase those employees’ ownership to 80% within 20 years. It sounds almost valiant, like when KKR bought out a door company in 2015 and promised every employee a payout of at least…

Source link

Leave A Reply

Your email address will not be published.