RE/CAST: Advisors in Manufacturing Ownership Succession
This represents a fantastic opportunity for Black, Latinx and other people of color entrepreneurs and employees to purchase the company as a way to retain jobs and diversify the ownership of our manufacturing sector.
Based on survey research commissioned for this project and performed by the UIC Great Cities Institute:
In a report by the Ohio Employee Ownership Center, it was noted that, “The failure to plan for business succession in small and medium-sized companies is the leading preventable cause of job loss in the United States.” This is a long-standing problem in Chicago and around the country. Small, privately-held companies are hidden in plain sight, and there is relatively little information about the companies. Issues of succession of ownership are viewed as a private family concern, and often not addressed until it’s too late.
That is what RE/CAST is all about. RE/CAST is a program of Manufacturing Renaissance (MR). Re/Cast’s mission is to retain manufacturing companies and to diversify ownership in the manufacturing sector. Re/Cast identifies companies facing a succession challenge through our Early Warning Network that gathers public data on companies as well as tapping into the knowledge of employees, unions, financial advisors, business associations, local government and others who have direct contact with the owners of companies.
We are looking for healthy manufacturing companies that have an aging owner, employ between 15 and 50 people, have the potential for growth, and have $2 million to $15 million in sales. We evaluate the company to ensure it’s viability. We then identify prospective purchasers of the company from its employees; Black, Latinx, Indigenous, and people of color entrepreneurs; and High Road entrepreneurs committed to keeping the company in the local area and developing it over the long-term. We assist in the acquisition, including financing the acquisition.
MR has a long history in identifying this challenge/opportunity; and has arranged the acquisition of companies by employees and BIPOC entrepreneurs. We are also inspired by a similar project in Barcelona, Spain that has the same features of Re/Cast and that arranged 600 acquisitions last year alone. Our work has been supported by the Chicago Community Trust, LISC Chicago, and the Cook County Bureau of Economic Development.
We believe that this is a program that can be replicated and scaled throughout the country with government support.
For more information, contact Dan Swinney