Editor’s note: This guest post is sponsored by JPMorganChase.

As the wave of Baby Boomer retirements accelerates, our country faces a pivotal moment: 12 million businesses — representing $10 trillion in assets — are expected to change hands over the next decade, and the transition is well underway. This “Silver Tsunami” is more than a demographic shift; it’s a generational transfer of opportunity, risk and wealth. For business owners, employees and communities, the stakes could not be higher.

The challenge: Protecting legacies and local economies

For many business owners, their company is the culmination of years of hard work and a cornerstone of their community. Yet, the reality is stark: nearly 60% of owners have no formal succession plan and only 30% of family businesses successfully transition to a second generation. Without a clear path forward, businesses risk closing, jobs are lost and the legacies owners have built over decades can vanish.

Owners recognize the importance of succession planning, but many lack the time, resources or connections to navigate the process. Meanwhile, the marketplace for business ownership transitions is fragmented — only one in five businesses listed for sale actually sells — and sellers are often unaware of other, less traditional exit options. 

The result? Missed opportunities to build and preserve generational wealth, keep businesses open, protect local jobs and improve business and employee performance. 

An opportunity: Employee ownership as a transformative solution

Amid these challenges, employee ownership stands out as a powerful, underutilized solution. While employee ownership is not the right fit for every business — due to factors like company size, structure, or industry — it enables sellers to realize the value of their business and protect their legacy, while creating shared wealth for the people who helped build the company. Research shows employee-owned firms can outperform their peers: they are more productive, have lower turnover, are more resilient in times of crisis, and their employees are better off in retirement. Specifically: 

• The National Center for Employee Ownership, or NCEO, found that companies with an Employee Stock Ownership Plan, or ESOP — one model of employee ownership — reported productivity increases of 4–5% in the year an ESOP is adopted, and 2–3% annually thereafter.
• NCEO also found that ESOP companies are 25% more likely to stay in business compared to non-ESOP companies during economic downturns. 
• Turnover at employee-owned companies is also 3 times lower than conventionally owned businesses, according to NCEO.
• NCEO noted that for employees, the typical ESOP participant also had roughly 3x the total retirement assets of an employee in a comparable company with a 401(k) plan and no ESOP.

Employee ownership is good for workers, businesses and communities.

At JPMorganChase, we know that ownership transitions are a critical milestone in the business journey, and we are committed to transforming how and when business owners prepare. Through our Private Business Advisory Solutions practice, we bring together experts from across the firm to provide business owners of all sizes and stages with comprehensive guidance in transition planning, valuation, tax and estate planning, and more. By combining deep advisory expertise, integrated banking solutions and philanthropic commitments, we make it easier for business owners to understand their options and meet their financial and strategic goals — providing access to the capital, connections and resources needed for growth and continuity.

In 2025 alone, JPMorganChase provided more than $11.5 million in philanthropic support for initiatives that expand education and support for business succession planning and ownership transitions and create wealth-building opportunities for owners, employees, and communities — including through employee ownership. We support organizations that help business owners and their advisors understand the benefits of employee ownership, navigate the transition process, and connect with the resources they need to succeed. 

For example, our support of the EO Equals Initiative — a product of Project Equity, in collaboration with the Employee Ownership Expansion Network and others — focuses on outreach and awareness-building efforts, accredited training for advisors, new product development and expanded access to business succession planning and employee ownership transition resources. We have also helped bring together key business, government and community stakeholders to advance conversations about the positive impact of employee ownership as a past sponsor of the Aspen Institute Employee Ownership Forum. 

Yet, scaling the financing needed to support more of these ownership transitions remains an opportunity for further collaboration. Funders, philanthropists, financial institutions, policymakers and community organizations all have a role to play in expanding access to capital, expertise and resources — ensuring that more businesses, employees, and communities are positioned to realize the value and impact of employee ownership.

Building strong businesses and resilient communities through employee ownership

The Silver Tsunami presents a once-in-a-generation opportunity to rethink how we preserve and grow businesses, expand ownership and build wealth in local communities. By supporting innovative transition options like employee ownership, we can help business owners create stronger companies, establish their legacies, empower employees and drive economic growth in their communities and beyond. 

Succession planning is not just a business imperative — it’s a community imperative. At JPMorganChase, we are proud to celebrate Employee Ownership Month and stand with business owners, employees and partners across the country to ensure that the businesses at the heart of our communities continue to thrive for generations to come.

Regina Carls is the head of the ESOP Advisory Group, Private Business Advisory Solutions at J.P. Morgan. For more information on the benefits of employee ownership, and how JPMorganChase supports our clients and other stakeholders in this process, visit:  https://www.jpmorgan.com/credit-and-financing/employee-stock-ownership-plan

Guest posts on ImpactAlpha represent the opinions of their authors and do not necessarily reflect the views of ImpactAlpha.