The Succession Option More Owners Should Consider

A quiet wave is coming for business owners.

Over half of the business owners in the United States are over the age of 55. Millions of founders are reaching the point where they need to decide what happens next. Some will retire. Some will sell. Some businesses will close simply because there is no clear succession plan.

For years, the usual options have seemed straightforward: sell to a strategic buyer, accept a private equity offer, pass the business to family, or shut the doors.

We spend so much time, energy, and effort learning how to build and grow a business. Yet many owners spend far less time learning how to leave one well.

That is why employee ownership deserves a place in the succession conversation.

I did not start Ocaquatics thinking about succession. I was focused on surviving, serving families, and building a team. But after 30 years, I had to ask what would protect the culture and mission we had worked so hard to create.

Private equity firms approached us. The offers were serious. But I had seen what can happen when ownership moves far away from the people and the community that built a company. Culture can change. Decisions can become disconnected. Employees can become line items.

So I began exploring employee ownership models. In 2024, we transitioned Ocaquatics to 100 percent employee ownership through an Employee Ownership Trust.

It was an alternative to a traditional exit, and one that can be truly great for team members, the community, and the founder. Employee ownership can preserve independence, reward the people who helped build the company, and create a path forward that is aligned with a founder's values.

It is not right for every business. It requires planning, education, and the right professional guidance. It also works best when there is already a culture of ownership, accountability and shared purpose.

But for owners who care about legacy, employee ownership deserves a place in the conversation.

Before you decide your only choices are selling to outsiders, handing it down, or closing, ask one more question: Could the people who helped build this business help carry it into the future?

The answer may open a door you did not know existed!