Great to hear more businesses are doing this!
I think you forgot to log out of your account.
samtexas also seems to have been registered on the same date.
Not selling up
11–15 of 15 posts
Re: Not selling up
#12This is the first i've ever heard of the approach of selling down. Interesting concept.
Not the first time though. AFAIK John Lewis / Waitrose also underwent a similar process (and is not employee-owned).
Re: Not selling up
#13This is the first i've ever heard of the approach of selling down. Interesting concept.
Not the first time though. AFAIK John Lewis / Waitrose also underwent a similar process (and is not employee-owned). https://en.wikipedia.org/wiki/John_Lewis_Partnership
Coincidentally it's not even the first time for the tiny, 3000-population town where Torchbox is based: an air quality consultancy based here did the same in December (https://www.dustscan.co.uk/about/news). (I live in the town but have no connection other than knowing a few of the Torchbox people!)
Re: Not selling up
#14Earlier quoted context omitted.
> the founders have a way to realize their equity as well. That's the part I don't get. Wouldn't they keep the profits anyway if they just didn't sell?
If they didn't sell, they would keep all future profits but not exchange the underlying equity for cash.
But they aren't exchanging it for cash, they are exchanging it for future profits ("They’ll pay us (...) from the company’s future profits") - which they would get anyway. No?
Re: Not selling up
#15Earlier quoted context omitted.
If they didn't sell, they would keep all future profits but not exchange the underlying equity for cash.
But they aren't exchanging it for cash, they are exchanging it for future profits ("They’ll pay us (...) from the company’s future profits") - which they would get anyway. No?
I may have been reading it wrong, but my understanding was that they would be exchanging their equity for a fixed dollar amount, to be paid from future profits. If they didn't sell, they would continue to receive a fixed percentage of profits. Essentially, they're converting their equity into a loan.