Workers BuyOut (WBO):
Worker empowerment
From traditional enterprise to workers’ cooperative
The term “Workers BuyOut” (WBO) refers to the acquisition of a company by its workers. It is a process through which the employees of a business take control by purchasing a significant share or the entirety of the capital. Often, a WBO is implemented when a company faces a generational change but has no successor, or when a company is in crisis and destined for closure. It is the conversion from a traditional enterprise into a workers’ cooperative.
How Legacoop supports Workers BuyOut processes
Tools and resources to achieve a WBO
Legacoop supports the realization of WBOs: we are committed to preserving jobs, protecting workers’ skills, supporting the local economy and social stability, and promoting the involvement and active participation of employees. Thanks to the “Marcora Law,” the available financial tools (such as Coopfond), and the support of Institutions, Legacoop provides numerous resources to accompany and assist future cooperative entrepreneurs. We work together with trade unions and institutions to listen to and interpret local needs and promote sustainability and development strategies.
WBO: the key role of Workers' Cooperatives
Democratization of work, innovation, and business continuity
The WBO holds strategic importance for several reasons: it allows for clear benefits for workers, the territory, the economy, and the entire social fabric.
It allows for business continuity in contexts where companies might otherwise close or be sold to external investors, often with negative consequences for workers and local economies. This is a significant factor in a territory like Emilia-Romagna, where many small and medium-sized enterprises are family-run and face succession difficulties. Continuity in production guarantees well-being for the community; it means a guarantee of work and income, which are fundamental elements for a stable society.
It is a model that implements the democratization of the workplace: workers take on a different role because they become part of the decision-making processes. Involvement and responsibility translate into greater satisfaction, which can also impact productivity levels.
The WBO is also a powerful catalyst for innovation and renewal: corporate crises often require new approaches and strategies, and workers’ cooperatives, thanks to their collective nature, are proactive and capable of driving change and introducing innovations. At the same time, workers have the advantage of knowing the company’s history well; they are therefore able to enhance strengths and analyze and correct weaknesses.
By demonstrating the success of workers’ cooperatives, the WBO inspires other organizations to consider this model as a solution for social continuity. Labor cooperatives then trigger a virtuous cycle that multiplies resources, strengthens development, and creates stable economic resources.
How to activate the WBO process?
Creating a new cooperative: step-by-step with Legacoop
The WBO is a journey consisting of a series of stages, a path that can be guided by the professionalism and knowledge of Legacoop. The entrepreneur or employees intending to implement the WBO process can contact Legacoop Emilia-Romagna to initiate a dialogue between the parties. The subsequent steps consist of a thorough business analysis, the preparation of a business plan, and the development of a plan for the purchase of company assets. Finally, the financing project is launched, leading to the creation of the new cooperative.
The advantages of forming a cooperative
Equity, stability, and effective use of resources
Choosing the cooperative form for businesses offers a series of advantages, both for individuals and the community.
- Ownership is not in the hands of a few. Whatever the share of capital owned, the value of the cooperative member's vote in the assembly is always equal to one.
- The business risk in the cooperative form is limited to the share capital subscribed by each individual member-worker.
- Due to its non-speculative nature, the cooperative tends to be preserved over time for future generations. This fuels a virtuous cycle of investment and innovation. Furthermore, it encourages the transfer of skills from generation to generation.
- The cooperative form allows for the efficient use of company resources, enabling reasonable investments while avoiding management waste.
The WBO is, therefore, a process aligned with the values and principles of Legacoop and the cooperative world:
- Free and voluntary membership
- Democratic control exercised by the members
- Economic participation of the members
- Autonomy and independence
- Training, information, cooperation
- Commitment toward the communit
Legacoop has a dedicated desk for the WBO process