Jon Stojan
Image credit: Jessie Wilson
After nearly 30 years leading CodeWeavers, founder Jeremy White was ready to retire, but wanted to do so without compromising the company’s independence, values, or employee futures. Traditional options weren’t appealing: selling to private equity could lead to layoffs and culture changes, and finding the right buyer proved challenging. Instead, White transitioned his company to employee ownership with help from Common Trust, ensuring his legacy continued while securing his retirement financially.
White’s story demonstrates a solution to a massive challenge facing American business owners today, dubbed the “Silver Tsunami.”
If you’re one of nearly 10 million Baby Boomer business owners approaching retirement, you’re facing a critical decision: what happens to your life’s work when you step away? With only about 10% of businesses being absorbed by private equity or corporate buyers, the harsh reality is that many businesses without succession plans will simply close—taking jobs, community impact, and the owner’s legacy with them.
Unlike traditional exits where you might regret your decision (75% of owners regret selling within a year), employee ownership offers something different: a fair sale price for your business while preserving what you’ve built.
Why Legacy Driven Owners Choose Employee Ownership
When Jeremy White explored his exit options, he discovered what many business owners find: traditional exits often mean sacrificing what matters most. By transitioning to employee ownership, Jeremy achieved an outcome that met his financial goals and protected his legacy:
- He received fair market value for his business without the uncertainties of finding the perfect buyer
- His company maintained its independence and culture that took decades to build
- His employees became invested owners, dramatically improving retention and performance
- He created a lasting legacy while gaining the freedom to retire on his terms
Common Trust, the organization that assisted CodeWeavers in its transition, specializes in making this process accessible for business owners. By helping structure the deal, secure financing, and create a sustainable governance model, Common Trust ensures that employee ownership transitions are financially viable and set up for long-term success.
CodeWeavers is part of a growing movement—over 6,500 U.S. companies have already adopted employee ownership. Research from Rutgers University shows that employee-owned businesses experience higher productivity, lower turnover, and greater long-term stability. In fact, such companies are three to four times more likely to retain staff, reducing costly turnover and fostering a committed workforce.
Government Support and Growing Interest in Employee Ownership
Recognizing the economic and social benefits of employee ownership, policymakers have introduced various measures to support these transitions. Programs like the WORK Act fund education and technical assistance programs to help businesses explore employee ownership options. Additionally, 18 states—including New York, Colorado, and Washington—offer tax incentives, grants, and financial support to encourage businesses to consider employee ownership.
Programs like the USDA’s Rural Business Cooperative Service and Opportunity Zones further facilitate ownership transitions, particularly for small businesses in underserved communities. With these initiatives in place, employee ownership is becoming an increasingly viable and attractive option for business owners planning their retirement.
Is Employee Ownership Right for Your Retirement Plan?
As the Silver Tsunami accelerates, the demand for viable succession plans will only grow. Without careful planning, many businesses could close, leading to job losses and economic instability. Employee ownership structures, facilitated by organizations like Common Trust, provide a clear and effective alternative—allowing business owners to step away with confidence while giving employees a direct stake in the company’s future.
“Waiting too long to plan your exit puts everything you’ve built at risk.” Says Common Trust co-founder Zoe Schlag.
Employee Ownership provides a compelling alternative to the traditional exit path for small businesses—allowing owners to step away with confidence while giving employees a direct stake in the company’s future.
Image credit: Jessie Wilson