EO Myths

https://project-equity.org/news/employee-ownership-insider/five-myths-about-employee-ownership/

1. Myth: Employees can't run the company on their own. The reality is that employee ownership does not mean employees will be running the company alone. Management typically stays the same, with the addition of a board of directors elected by the employee-owners. 
2. Myth: Employees don't want to buy the company. Employees may be interested in ownership, but need to understand what it entails. Providing information and answering their questions is key. 
3. Myth: Employees don't have the money to buy the company. In an employee ownership transition, the employees do not need to provide the full purchase price. The transaction is often structured similar to a leveraged buyout, with lenders providing the majority of the funding. 
4. Myth: Owners won't get a fair price selling to employees. sellers can receive market value when transitioning to employee ownership, and a formal valuation is recommended as a first step. 
5. Myth: Employee ownership is complicated and difficult. While any business succession process takes effort, employee ownership can be a favorable option in terms of timeline and cost, with support available.  https://cleo.rutgers.edu/wp-content/uploads/2019/05/Three-ESOP-Myths-Debunked.Camille-Kerr.9.16.13.pdf
6. ESOPs are too risky for employees
7. ESOPs are more likely to fail than traditional companies
8. An ESOP is nothing more than a retirement benefit https://cleo.rutgers.edu/wp-content/uploads/2019/05/Five-Myths-of-EO.John-Hoffmire.-2011.pdf
9. You have to pay a lot for your ESOP
10. ESOP valuations swing too much year to year
11. There can never be too much participative management
12. All ESOP's have the same potential to benefit employees
13. An ESOP trumps a non-ESOP which has good tech https://www.fiftybyfifty.org/2019/03/common-myths-about-employee-ownership/
14. Employee ownership means an ESOP.
15. All employees must buy-in on the first day after the company is purchased.
16. Employee owners will make day-to-day management decisions for the company. https://www.usda.gov/media/blog/2022/10/17/six-myths-about-cooperatives-debunked
17. Co-ops only operate in the agriculture sector
18. Co-ops are always non-profits or charities
19. Only co-op members can utilize goods or services provided by the co-op
20. It's impossible for a co-op to be innovative and scale
21. A co-op will save a failing business, or it will become successful because it is a co-op
22. Co-ops only exist to serve underserved communities