You are here
Why choose a community buyout?
Why an owner, or a community, might consider exploring a community buyout.
Community buyouts happen due to a variety of reasons. Business owners might be looking to retire but still want to see their business continue to serve its community (where they may continue to live), the community might be faced with the loss of an important local service or want to secure an important community asset.
Research shows that some of the strongest growth areas for co-operatives are community co-operatives – community buildings, football clubs, pubs, renewable energy provision or shops.
A community buyout provides a number of benefits for both the existing owner and the community who will take on the business:
- The legacy stays intact. The businesses name and place in the community is secured and not destroyed as might happen with a trade sale or closure.
- The local community - who are the key market for the business - are now able to democratically control the business and its future development.
- The community, who have helped to save the business and develop it, have an opportunity to share in future reward, both collectively and individually.
- The business can take long-term decisions about its future, rather than be forced to make short term decisions to make a quick return.
- No need to share the “books” with the competition. The outgoing owner doesn’t need to reveal commercially sensitive information to competitors.
- The business owner has the option of retaining a role in the business if they wish and being a member.
- Customers, suppliers and the local economy benefit from continuity rather than closure.