Alternative Exit

In this live episode from the EOA Conference in Telford, Andy explores the critical but often overlooked piece of the employee ownership puzzle: access to capital. Chris Walton from Shawbrook, a specialist SME lender, explains why the UK's EO ecosystem has historically been underserved by finance and how that's changing.

Key Takeaways:

While the tax-free incentive has driven amazing growth in UK employee ownership, it's also created a significant barrier: many transitions rely entirely on deferred consideration, with sellers waiting years to receive their money. This lack of accessible finance has held back countless transitions that could otherwise happen.

Chris explains why mainstream lenders have retreated from anything "out of the ordinary" and how Shawbrook was founded specifically to serve these underserved niches. There's nothing fundamentally different about lending to employee-owned businesses - but you do need to understand the nuances around governance, management transitions, and how businesses prepare to bring employee owners on the journey.

The conversation reveals a fascinating insight: if tax advantage is the only reason someone's going through the transition, they're probably not well-prepared for it, making it more challenging for lenders to provide finance. Chris's team looks beyond the numbers and management CVs to assess how thoughtfully businesses have considered what employee ownership actually means.

Memorable Moments:

• Why the US has both strong service providers AND strong finance, while the UK has lagged on the latter
• The importance of not being afraid of "prodding and poking" - it's part of growing up as a business
• How roughly half of Shawbrook's clients come directly through relationships and referrals
• Chris's unique answer about Victorian-era cooperative movements providing inspiration for today
• Why talking to businesses that have already made the transition is the best research you can do

Guest: Chris Walton, Shawbrook

• LinkedIn: https://www.linkedin.com/in/cjwalton/
• Company: https://www.shawbrook.co.uk

Sponsor: This episode is brought to you by EOT Expert by Christian Wilson – providing technical expertise and compliance support for EOT transitions and ongoing governance. Learn more at eotexpert.co.uk

In this live episode from the EOA Conference in Telford, Andy sits down with Catherine Cameron, founder of Agulhas (nobody can spell it, nobody can say it), a research and consulting firm specialising in climate change and conflict/fragility for international development. Five years into their employee ownership journey, Catherine shares why they chose legacy over a lucrative trade sale.

Key Takeaways:

Agulhas works with the World Bank, African Development Bank, Green Climate Fund, UK government, and foundations like the Gates Foundation. When Catherine and the other two founders (now in their 50s and 60s) started succession planning, they had trade sale offers on paper that looked "really tempting." But research revealed the inside story wasn't as glowy - trade sales often affect values and lead to redundancies.

The financial outcome? A trade sale would have been better. But the decision wasn't about money.

Catherine describes their thoughtful transition process: 12-18 months of founder discussions, involving the four-person leadership team, keeping staff informed without overwhelming them. The key message wasn't about bonuses - it was about opportunity, responsibility, governance changes, and empowerment.

Five years later, the results speak for themselves: two of their main partner companies have since transitioned to EO, and one member of their supply chain too. Staff are having conversations about what EO means with their own agency and authority. And the founders are gradually exiting - Catherine leaves as a paid employee at the end of this year.

Memorable Moments:

• Why they named the company after Cape Agulhas (the southernmost tip of Africa where ocean currents meet)
• The "strange people coming in and out of the office" during transition planning
• Staff feedback: Agulhas focused on opportunity and empowerment, other companies went straight to "when do we get our bonus?"
• The employee trustee's quarterly anonymous pulse surveys to check how everyone's feeling
• Transitioning in December 2020: "We were playing Hokey Cokey with COVID"
• Achieving B Corp certification in summer 2023 as a reinforcement of EO values
• Catherine's immediate answer to who she most admires: "Ann Tyler" - no hesitation

Guest: Catherine Cameron, Founder at Agulhas

• LinkedIn: https://www.linkedin.com/in/catherine-cameron (simple!)
• Company: https://agulhas.co.uk

Sponsor: This episode is brought to you by EOT Expert by Christian Wilson – providing technical expertise and compliance support for EOT transitions and ongoing governance. Learn more at eotexpert.co.uk

In this live episode from the EOA Conference in Telford, Andy sits down with Michael Hodgson, elected chair of Glide, an employee-owned membership organization that holds shares across three manufacturing businesses: Gripple (wire joiners, £130M turnover), LoadHog (returnable transit packaging, £45M turnover), and GoTools (tooling manufacturer).

Key Takeaways:

Glide operates a direct ownership model that's different from most EOTs discussed at the conference. Every employee is required after one year to buy shares in their parent company from Glide, which holds about 20% of gifted non-tradable shares donated by founder Hugh Facey. The model is set up like a sports club: one member, one vote, no hierarchy, with elected representatives.

The power of this approach? When people have skin in the game and see personal financial growth linked to business performance, "you see the cogs turn." The connection between discretionary effort and individual dividend payments creates powerful alignment. Michael describes how sharing forecast dividends and share price impacts generates tangible engagement with business performance.

The conversation explores sophisticated governance: Glide operates with clear accountability around growing businesses, new product innovation as a percentage of turnover, charity contributions, and sector support. Michael serves on company boards, participatory frameworks include 200 members in budget discussions, and the model has proven sustainable for decades - the founder gifted shares in the early 1990s.

Memorable Moments:

• Hugh Facey's view: "It's not proper employee ownership" without direct ownership
• The coffee shop conversation: understanding dividends through the lens of personal spending
• How 11.5% annual share price growth demonstrates the model's success
• The delicate balance: Glide challenges and holds businesses to account, but doesn't manage them
• Why every key person in the business is a shareholder (succession risk mitigation)
• The "largest shareholder" insight: 20% gifted shares plus all individual shareholders who are Glide members
• Michael's admiration for Andrew Lane at Union Industries: "Very authentic Yorkshire business"

Guest: Michael Hodgson, Elected Chair at Glide

• LinkedIn: https://www.linkedin.com/in/michael-hodgson-a79ab625/overlay/photo/
• Companies: Gripple, Load Hog, GoTools (find via their websites)

Sponsor: This episode is brought to you by EOT Expert by Christian Wilson – providing technical expertise and compliance support for EOT transitions and ongoing governance. Learn more at eotexpert.co.uk

Sponsor: This episode is brought to you by EOT Expert by Christian Wilson – providing technical expertise and compliance support for EOT transitions and ongoing governance. Learn more at eotexpert.co.uk

In this live episode from the EOA Conference in Telford, Andy talks with Liam Toms, Communications and Engagement Manager at Grapevine, a managed service provider for IT and telecom services. Nearly three years into their employee ownership journey, Liam shares candid insights about being somewhere "in the middle" - past the early surprises but still navigating challenges.

Key Takeaways:

Liam represents a common experience: he found out Grapevine was transitioning to EO through individual meetings, not a broad announcement. He'd heard whispers the week before and "did a very good job of pretending to be totally surprised." While conventional wisdom suggests consulting staff beforehand, Liam acknowledges the tradeoff: "If you're going to work for a company rather than starting your own business, you're doing it because you want the features of being employed. Suddenly you're saying people have these heightened responsibilities they didn't ask for."

The business set up an EO forum with their longest-serving employee (33 years), Liam, and a very new recruit. What started as employee representation became a "task squad" - lifting rocks that hadn't been moved in years, dealing with organizational "life laundry" accumulated over 30 years. This gave Liam and his senior colleague confidence to move into management roles.

The conversation explores the challenge of profit share volatility: year one had healthy profit share, year two didn't. Logically, averaging across two years is still good. But people don't think that way. "It's like we did really well and then we're not doing well." The business is still learning how to help people see the bigger picture.

Memorable Moments:

• Finding out individually and pretending to be surprised
• The EO forum becoming an organizational "task squad"
• "Do things different so people see that something has changed" - Bella's key advice
• The challenge: "People don't really get it yet, like what they can and can't do"
• Year one profit share vs year two: "Business is like a piece of trucks"
• Hosting their first annual conference (after the venue cancelled a week before)
• Liam's advice: "Give it a go. What's the alternative? You sell to a bigger organization. I think we've had enough of that."

Guest: Liam Toms, Communications and Engagement Manager at Grapevine

• LinkedIn: https://www.linkedin.com/in/liamtoms/
• Company: https://grapevine.uk.com

Sponsor: This episode is brought to you by EOT Expert by Christian Wilson – providing technical expertise and compliance support for EOT transitions and ongoing governance. Learn more at eotexpert.co.uk

What does it really take to make employee ownership work? In this episode, I talk with Campbell McDonald, one of the UK’s leading experts on employee ownership and managing director of the Eternal Business Consultancy. With 14 years in the EO space—from his early days at the John Lewis Partnership to leading the landmark 2023 EO Knowledge Programme—Campbell brings unmatched insight into what truly drives successful EO businesses.

We break down what the data shows about EO’s transformative impact and uncover what really happens between the deal and a healthy ownership culture. Campbell shares the two essential questions every employee-owned company must answer, why education matters more than instructions, and how trust between boards and trustees shapes outcomes. We also touch on what employees value most and why setting honest expectations from day one is crucial.

Whether you’re a founder exploring EO or already past the transaction stage, Campbell offers a clear, practical roadmap for turning employee ownership into real, lasting impact.

Timestamps:

00:00 Introduction and Guest Overview
 01:30 Campbell's Journey into Employee Ownership
 05:45 The Power of John Lewis Partnership's Legacy
 09:20 The Transformative Impact of Employee Ownership
 14:15 The 2023 EO Knowledge Programme: Proof of Impact
 22:40 What Happens Inside the Black Box?
 28:50 The Two Critical Questions Every EO Business Must Answer
 35:10 Education vs. Instruction: Building Ownership Behaviors
 42:30 Setting Honest Expectations from Day One
 48:15 The Role of Independent Trustees in Building Trust
 55:20 Challenges and Opportunities Ahead for UK Employee Ownership

Key Takeaways:

⚫ Campbell’s Dublin “prove it” moment sparked his mission to gather hard data on EO impact.

⚫ The 2023 EO Knowledge Programme showed an 8–12% productivity boost and strong individual outcomes in EO businesses.

⚫ Leaders must answer two questions: What are your 2–3 ownership differences? What owner behaviors do you expect?

⚫ The “good company penalty”: strong pre-EO businesses must work harder to show clear ownership benefits.

⚫ Materiality surveys uncover surprising differences in what employees value across locations and roles.

About Campbell McDonald:

Campbell McDonald is the Managing Director of the Eternal Business Consultancy, Chief Executive of Ownership at Work, and an Executive Fellow at Rutgers University’s Institute for the Study of Employee Ownership. With 14 years in the EO movement, he has supported dozens of businesses through transitions and serves as an independent trustee for several employee-owned companies. He led the 2023 EO Knowledge Programme—the UK’s largest research study on the impact of employee ownership. Campbell previously consulted for the John Lewis Partnership and founded Baxendale Advisory, an EOT-owned management consultancy. He champions evidence-based approaches to unlocking the transformative power of EO.

Connect with Campbell McDonald:

Website: https://www.theeternalbusiness.com
LinkedIn: https://www.linkedin.com/in/campbell-mcdonald-628378
Ownership at Work: https://ownershipatwork.org 

Connect with Andy Farquharson:

LinkedIn - https://linkedin.com/in/andyfarquharson/
Instagram - https://instagram.com/andyfarq
Website - https://abettermonday.me/
Email - [email protected] 

What does it take to build an entirely new employee ownership ecosystem from the ground up? In this episode, I sit down with Tiara Letourneau, co-founder and CEO of Rewrite Capital and board chair of Employee Ownership Canada, to explore how she's architecting Canada's emerging EOT market. With a Master's in Finance from Cambridge and a background in climate finance and impact investing, Tiara brings a unique lens to employee ownership—one focused on creating excellent companies, not just executing transactions.

We dive into the fascinating journey from lobbying for new legislation to building a specialized advisory firm that combines M&A expertise with industrial psychology. Tiara shares why change management is just as critical as financial structuring, how Canadian EOTs offer unprecedented flexibility, and what it takes to help business owners reimagine succession beyond the traditional sale. This conversation is packed with insights on trustee roles, governance transitions, securing bank financing without personal guarantees, and why Canada's three-year window demands a quality-first approach to every transaction.

Timestamps:

00:00 Introduction and Tiara's Journey to Employee Ownership
 08:00 Lobbying for Canada's EOT Legislation and Building a Coalition
 14:00 Why Design and Implementation Matter as Much as M&A
 22:00 Training the ABCs: Trustees, Boards, and Management
 32:00 Helping Owners Reimagine Control and Legacy
 37:00 Financing EOTs: Securing Bank Partnerships Without Personal Guarantees
 46:00 The Three-Step Process: Feasibility, Roadmapping, and Transaction
 54:00 Quickfire Round: Leaders, Resources, and Advice for Owners

Key Takeaways:

• Combining M&A expertise with industrial psychology and change management prevents years of post-transaction governance friction and creates stronger employee ownership transitions
• Canada secured 14 financial partners willing to lend for EOTs without personal guarantees by focusing on conservative leverage (40-50%) and speaking the language of bankers
• The critical question for business owners isn't about maximizing price—it's "What do you wish to preserve about your company?" and designing the transaction around that vision

About Tiara Letourneau:

Tiara Letourneau is co-founder and CEO of Rewrite Capital, Canada's premier M&A advisory firm dedicated exclusively to Employee Ownership Trusts, and board chair of Employee Ownership Canada. With a Master's in Finance from Cambridge and extensive experience in climate finance, Islamic finance, and impact investing, she has designed and optimized multi-billion dollar funds before turning her focus to employee ownership. Tiara was instrumental in advocating for Canada's EOT legislation and is recognized as a thought leader in innovative finance solutions

Connect with Tiara Letourneau:

LinkedIn: https://linkedin.com/in/tiaraletourneau/
Website: www.rewritecapital.com 
 

Connect with Andy Farquharson:

LinkedIn - https://linkedin.com/in/andyfarquharson/
Instagram - https://instagram.com/andyfarq
Website - https://abettermonday.me/
Email - [email protected] 

What does it mean to truly live the values of shared ownership? In this episode, I sit down with Frank Cetera, Director of the Business Transfers Program at the Democracy at Work Institute, to explore his journey from a union household to becoming a national leader in employee ownership transitions. Frank shares how early experiences with workers' rights shaped his career helping businesses transition to worker cooperatives, ESOPs, and other employee ownership models.

We dive into the practical challenges workers face when stepping into ownership—from understanding financial statements to building confidence in decision-making. Frank breaks down open book management, effective facilitation techniques, and how cities are creating entire ecosystems to support transitions. Plus, he shares his remarkable story of converting his own Syracuse home into a housing cooperative, truly walking the talk of shared ownership.

Timestamps:

00:00 Introduction and Frank's Journey to Employee Ownership
05:00 Understanding the Democracy at Work Institute's Mission
09:00 Core Benefits of Employee Ownership for Workers
16:00 Overcoming Financial Literacy Challenges Through Open Book Management
 22:00 Building Confidence and Creating Effective Governance Structures
 29:00 Values-Driven Transitions and Working with Business Owners
 33:00 Building City-Scale Ecosystems for the Silver Tsunami
 37:00 Quickfire Round: Leaders, Resources, and Final Advice

Key Takeaways:

➔ Employee ownership delivers stability, increased wages through profit-sharing, and confidence growth—with the confidence factor being the most underappreciated benefit

➔ Financial literacy is the biggest challenge for new worker-owners; open book management should start years before transition with clear, jargon-free statements that connect numbers to daily work

➔ Strong facilitation and ongoing education are essential for effective participatory meetings and decision-making, helping workers build confidence to contribute strategically

➔ Successful transitions come from values-driven owners who prioritize legacy and community impact over maximizing sale price, though awareness gaps among accountants and advisors remain a major barrier

➔ City-level ecosystem building—with municipal funding for technical assistance, marketing, and referral networks—is proving to be the most effective strategy for scaling employee ownership during the silver tsunami

About Frank Cetera:

Frank Cetera is the Director of the Business Transfers Program at the Democracy at Work Institute, where he leads national efforts to support business transitions toward employee ownership. With roots in a union household and experience spanning environmental nonprofits to business development, Frank serves as the backbone coordinator for the Workers to Owners Collaborative—a network of 50+ organizations supporting employee ownership transitions across the United States. He also serves on the board of Syracuse Cooperative Federal Credit Union and is actively converting his own collective house into a housing cooperative, embodying the cooperative values he advocates professionally.

Connect with Frank Cetera:

Website: www.institute.coop
Website (Resources): www.becomingemployeeowned.org
https://www.linkedin.com/in/frankraymondcetera/ 

Connect with Andy Farquharson:

LinkedIn - https://linkedin.com/in/andyfarquharson/
Instagram - https://instagram.com/andyfarq
Website - https://abettermonday.me/
Email - [email protected]

What happens when you combine employee ownership with human services? In this episode, I sit down with Eric Strickland, CEO of 3TLs—a purpose-driven group of 18 employee-owned companies with nearly 700 employee owners across five states. Eric shares his 20-year journey from CFO to CEO, including the rare "ESOP-to-ESOP" transaction that launched 3Ls and his innovative approach to building employee wealth through vertical integration.

We explore how Eric thinks about employee ownership as an asset allocation problem, why culture requires intentional investment, and how to drive innovation in purpose-driven organizations. From quarterly town halls to investing in early-stage healthcare tech, Eric reveals what it takes to make employee ownership work in mission-focused businesses where workers care more about impact than retirement accounts.

Timestamps:

00:00 Introduction and Eric's Background
03:00 The First ESOP and Why It Closed to New Participants
07:00 The Rare ESOP-to-ESOP Leveraged Buyout
12:00 Three Ls and the Vertical Integration Strategy
20:00 Investing in Culture and Building Trust
30:00 Driving Innovation Through Frontline Creativity
36:00 Innovation as Asset Allocation
39:00 Common Myths About ESOPs
45:00 Quickfire Questions and Final Advice

Key Takeaways:

• Why OmniVisions needed a second ESOP after the first closed to new participants
• How to think about employee ownership as a retirement asset allocation problem
• The vertical integration playbook: turning operating expenses into employee-owned businesses
• Why quarterly town halls with open Q&A build the trust necessary for strong EO culture
• The biggest ESOP myths: complexity and cost compared to traditional exits
• Why it takes 24+ months for young workers to see meaningful value in their ESOP accounts

About Eric Strickland:

Eric Strickland is the CEO of 3Ls, a purpose-driven organization of 18 employee-owned companies serving human and health services across five states. With a 20-year tenure that began as CFO of OmniVisions in 2005, Eric has become a leading voice in the employee ownership movement, bringing a systems-minded, numbers-focused approach to social entrepreneurship.

Connect with Eric Strickland:

LinkedIn:https://linkedin.com/in/eric-strickland-3ls/
Website: https://3ls.com 

Connect with Andy Farquharson:

LinkedIn - https://linkedin.com/in/andyfarquharson/
Instagram - https://instagram.com/andyfarq
Website - https://abettermonday.me/
Email - [email protected]

In this episode of Alternative Exit, Andy Farquharson sits down with legal industry veteran David Owen (formerly CEO of Oliver & Co Solicitors) to unpack the real-world exit journeys from law practice, the shift to employee ownership, and why the toughest deals often happen internally. We dive into leadership, succession strategy, emotional and financial components of exiting a professional services business, and how to position yourself well ahead of the sell or transition day.

David shares his path from rising partner to CEO of Oliver & Co, his decision-making as the firm moved to 100% employee ownership, the deal structure (and mindset) behind the transition, and how he navigated the emotional side of stepping away. We explore: How do you know when it’s time to exit? How do you craft an exit that preserves culture? How much is “enough”? And, maybe most importantly, how do you prepare your successor (or successor culture) so the business survives — and thrives — after you depart?

Timestamps:
00:00 Introduction: Why Podcast Sustainability Matters
03:15 Environmental Impact - Digital Carbon Footprint 
08:45 Green Hosting and Production Practices 
12:30 Social Sustainability - Diversity and Inclusion Goals 
18:20 Making Content Accessible to All 
22:40 Economic Sustainability - Revenue Diversification 
27:15 Team Wellbeing and Fair Compensation 
31:50 Content Strategy for Long-term Impact 
36:25 Measurement, Metrics, and Accountability 
41:10 Quick Wins You Can Implement Today

Key Takeaways:

• Exiting a professional-services business is not just about money — culture, client continuity and legacy matter significantly.
• Start planning the exit years before you actually want to depart: mindset, systems, leadership, client relationships.
• Converting to an employee ownership model (like Oliver & Co did) can align incentives and preserve continuity for clients and staff.
• Value creation happens in the business long before a board says “we’re ready to exit” — leadership matters.
• The emotional aspect of “letting go” is often underestimated — even when financials are strong.
• After exit, staying involved in a non-executive/trustee role can help with transition and personal identity.

David Owens

David Owens is the former CEO of Oliver & Co Solicitors, a firm based in Chester, UK. Under his leadership, the firm became 100% employee-owned and has consistently championed a high-performance but client-first culture. His expertise spans professional-services leadership, exit strategy, succession planning and governance in owner-led firms.

Oliver & Co Solicitors is a full‐service law firm based in the North-West of England. It provides services in personal and business law, including conveyancing, wills & probate, family law, commercial property and more. The firm emphasises “we are accountable to our clients and to each other” as part of its employee-ownership culture.

Connect with David Owen:

LinkedIn - https://www.linkedin.com/in/david-owen-eot/
Website - https://www.oliverandco.co.uk/ 

Connect with Andy Farquharson:

LinkedIn - https://linkedin.com/in/andyfarquharson/
Instagram - https://instagram.com/andyfarq
Website - https://abettermonday.me/
Email - [email protected]

What drives a founder to sell their company to employees instead of outside investors? In this episode, I sit down with Dr. Adria Scharf, Project Director of the Curriculum Library for Employee Ownership (CLEO) at Rutgers University, to explore her groundbreaking research on what motivates business owners to choose employee ownership as their exit path. Adria shares insights from her ongoing study of ESOP sellers, unpacks the emotional and economic logic behind these decisions, and reflects on why ownership transitions are never just financial—they’re deeply human.

We dive into the emerging evidence shaping the future of employee ownership in the U.S., from macroeconomic trends to personal stories of founders who prioritise legacy over liquidation. Adria discusses why awareness and education remain the biggest barriers to broader adoption, and how a high-trust culture can make or break a successful transition. Packed with data, heart, and hope, this episode offers a rare window into the psychology of selling—and the possibility of exits that build both wealth and community.

Timestamps:
00:00 Introduction and Guest Overview
 01:13 Exploring the Rutgers Institute’s Research Legacy
 04:17 The Rising Awareness of Employee Ownership in the U.S.
 08:20 What Motivates Founders to Choose Employee Ownership
 11:55 The “Benevolence” Factor and Cultural Transitions
 15:17 How Awareness and Advisor Education Affect Adoption
 17:33 The Synergy Between High-Trust Culture and Employee Ownership
 23:28 The True Cost—and Payoff—of Investing in Culture
 28:34 ESOPs and the Wealth-Building Impact for Workers
 32:20 Barriers to Scaling Employee Ownership
 34:12 Fast Round: Leaders, Resources, and Final Words of Advice

Key Takeaways:

• Why wealth inequality and wage stagnation are driving renewed interest in employee ownership
• The mixed motivations of sellers—balancing liquidity, values, and workforce legacy
• How some owners find ESOPs a financially rational exit, not just a benevolent one
• The hidden effort required to build high-trust, high-performance cultures post-transition
• Why awareness and advisor education are the biggest barriers to EO adoption
• The proven wealth impact of ESOPs: average $165,000 per employee in retirement value
• Why ESOP regulation makes it a uniquely inclusive and equitable ownership model
• Adria’s call for simpler, off-the-shelf EO models to reach smaller businesses
  
  

About Dr. Adria Scharf:

Dr. Adria Scharf is the Project Director of the Curriculum Library for Employee Ownership (CLEO) at Rutgers University, the world’s largest university-based institute dedicated to advancing research and education on shared capitalism. Her work explores how employee ownership influences job quality, economic security, and business succession. A respected researcher and advocate, Adria has co-authored multiple reports and is shaping the academic foundation for the next generation of equitable business models.

Connect with Dr. Adria Scharf:
Website: https://cleo.rutgers.edu
 LinkedIn: https://www.linkedin.com/in/adria-scharf-621b442/

Connect with Andy Farquharson:
LinkedIn - https://linkedin.com/in/andyfarquharson/
 Instagram - https://instagram.com/andyfarq
 Website - https://abettermonday.me/