Associating Employees with the Capital: a Strategic Lever for SMEs

If only 9% of French SMEs have taken the step of employee shareholding, 97% of them are ready to make that choice again.

Why share the capital with your employees?

It is well known: value sharing is a powerful leverage effect of its creation.
Associating one’s “circle 1” with the capital means aligning interests, securing the continuity of the project, and strengthening trust.
In pre-transfer, it also makes it possible to reduce the “one-man-show” effect embodied by the founder-director and to increase the chances of success of the takeover.

A strategic extra-financial lever

At a time when extra-financial criteria increasingly influence the valuation of companies, setting up incentive mechanisms at all stages of the company’s life is not a luxury: it is a concrete way of embodying the company’s values.

Setting up an adapted scheme

Legal tools exist and make it possible to imagine tailor-made solutions.
But beware of the boomerang effects: vague promises, poorly defined timing, or poorly perceived schemes can have the opposite effect to that sought.

It is a complex subject, mixing legal technique and human issues.
This is, moreover, one of SPARK AVOCATS’ favorite missions.

And you, are you considering associating your key profiles this year?