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Sun, 14 Jun 2026

Sun, 14 Jun 2026 As more US business owners retire many are selling up to their staff

Some six million bosses of American firms will be entering retirement between now and 2035.

* Softstar Shoes, an Oregon-based shoemaker, has been taken over by its 30-strong workforce after its former owner Tricia Salcido decided to sell it to them.
* Salcido is staying on as chief financial officer and says that employees have come up with many business ideas that she hadn't thought of before.
* Employee-owned companies can be more productive, less likely to make staff redundant, and pay higher wages, according to research.
* A "silver tsunami" of small business owners approaching retirement age are considering selling their businesses to their employees rather than outside buyers.
* Up to 600 US firms are sold to their workers per year, with investment funds available to help finance the deals rising by 78% last year.
* Employee Ownership Trusts (EOTs) and Employee Stock Ownership Plans (ESOPs) are two common methods used for transferring ownership to employees.
* Harvard's Ethan Rouen says that employee ownership appeals not only to older founders but also to younger workers who want to democratize wealth creation.
* The process of setting up an EOT or ESOP can be complex and may deter some owners, while a lack of awareness about the schemes is another barrier to adoption.