The types of community buyout available

This section gives an overview of the types of different types of community buyouts and how they are run.

A community buyout is a transaction in which the community buys the business from its present owner or owners.

Community ownership - types of structure:

Structure What it means for the community

Direct ownership without shares

The community become owners of the business but do not provide any investment via shares. The capital to buy the business in this case would be raised by a combination of grants and loans. The community enterprise runs the business directly.

Direct ownership via community share issue

Members of the community become individual shareholders in the business through purchasing community shares. The community enterprise runs the business directly. Read more about community shares here.

Indirect ownership

The community takes over the asset, either through community shares or other forms finance, and holds it for community benefit, but does not run the business themselves. In many co-operatively owned pubs, the community does not directly run the business but leases out the operation to a licensee who is selected by the community.
Updated: 21/03/2016