ABC Real Estate Pty Ltd
Peak Performance Trust for shares-only investment. In the case of this client, the investment strategy for the Trust is simple – it will only ever purchase direct shares in the business, thereby giving participating employees an indirect ownership of the business’s equity. Its staff receive dividends and a bonus reward based on the profit performance of the business. If the business was to ever be sold, the PPT would benefit from the capital sale, and indirectly, the employees would receive part of that capital gain. Based on this simple strategy, the value of the PPT automatically replicates any change in the value of the business, therefore employees directly benefit (or otherwise) from any change in value which is largely driven by profit performance and is something that the employees can directly influence.
XYZ Real Estate Pty Ltd
This business has also had success with setting up a trust for key employees – in this case a large property management base has been substantially expanded as the funds from the trust have been used to buy further property management books recently sold by a competitor in a nearby country town. The purchase was topped up with debt from Macquarie bank but the bulk of the funds came from the employee trust – employees are helping to fund the expansion of the business they now own a part of!
