Shareholding

Shareholding refers to a group or individual who holds financial securities (shares) in a company. In other words, being a shareholder means owning a part of the company. There are different ways to become a shareholder: by purchasing shares in the company that employs you, by acquiring shares in another existing company or a startup, among others. The shareholder must be prepared to invest a significant amount to obtain a say in the company, but also to demonstrate their seriousness and credibility with their financial partners. "On the other hand, in certain situations where the relationship of trust has been established for several years, it happens that the owner-managers finance the employee-acquirer or act as guarantors for their loan to the bank," explains Myriam Paquin, equity portfolio director at Femmessor.

AT ACCELERATION

Becoming a shareholder means getting involved in an existing business, often a lucrative one, for which it has been possible to validate profitability. The risk, although present, is therefore less than when starting a business from scratch, agrees Ms. Paquin. This is why it can be a way for women to access business ownership. “When it is possible to see the financial history of the organization, to verify its reputation, it is a facilitator. Not to mention that when you become a shareholder in an existing business, you avoid the three to five years that start-up usually requires.”

A PTITUDES

What are the skills and qualities sought in a future shareholder? "We have noticed that people often look for qualities that match their own values and skills that complement their own," says Ms. Paquin. According to Femmessor's study on shareholders, rigor, business development skills, and financial or accounting skills were cited as the most sought-after. "It is not necessary to master all of these skills perfectly," Ms. Paquin is keen to correct. Knowing how to recognize your strengths and weaknesses and knowing how to surround yourself with complementary people seems just as important to me."

ACTION

Interested in shareholding? Here are the next steps to consider.

1. Take stock of your personal situation and assess whether you are ready to commit and invest.

2. Express your interest to the owner-managers as early as possible . “It is important to talk about your deep motivations and demonstrate your seriousness in the process,” says Ms. Paquin. “This will allow you to verify the interest of the managers in opening up their shareholding and, if necessary, discuss the possibility of reassessing annually.”

3. Go meet your financial advisor and see what financing and support resources are available.

4. Look for investment opportunities . By inquiring with aid and support organizations or agencies, by mentioning your interest through your network, by meeting potential lenders.

Haven't listened to the episode on shareholding of the podcast Once and for All yet ? It's here .