Fund for Employee OwnershipNewsThe Working World

Impact Alpha – Leveraged buyout funds help businesses convert to worker-ownership

From Impact Alpha:

The widening wealth gap has sparked interest in worker ownership models that can build individual and community wealth. Across the U.S., about 6,000 companies have Employee Stock Ownership Plans, or ESOPs, and another 450 are worker co-ops. But the complexity involved and a lack of capital means those numbers have barely budged in recent decades. Start.coop and other accelerator programs are growing a new generation of worker-owned businesses. The real opportunity for impact at scale, however, is in converting established businesses to worker-ownership as Baby Boomer business owners retire. (Boomers own half of the 1.2 million U.S. businesses with 10 or more employees.)  

Get the full story here:

https://impactalpha.com/leveraged-buyout-funds-help-businesses-convert-to-worker-ownership/