Frequently Asked Questions

No two employee owned companies are the same, so there is not an ‘ideal’ employee owned company model, but there are factors that lend themselves better to employee ownership than others. 

Like any company that is looking to sell, there has to be something to sell to the employees. This means the company needs to have steady cash flow. 

For employee ownership to succeed, it’s important to have an employee base that’s prepared to take on the responsibility of running the business. While we can support cultural adjustments and the changes that come with such transitions, it’s important to recognize that employee ownership isn’t a magic fix. If your workforce and culture face significant challenges, these may need to be addressed first to set the transition up for success.

There is no catch, but like any big decision there are considerations. Do you have an employee base who can run the business, and wants to? 

There can also be challenges, in EOT models the payback period can mean employee owners don’t see benefits for a few years. During this period, it’s important to ensure everyone is on the same page and focused on the vision and mission of the company.

Absolutely, employee ownership comes in all shapes and sizes. We’ll work with you to create a customized plan that aligns with your goals, whether you aim for 1% employee ownership, 100%, or anywhere in between.

Employee Ownership does not mean everyone has a vote in daily decisions—your leadership team will continue to guide the organization. We’ll work with you to design a governance structure that aligns with your goals, addresses your unique needs, and clearly defines where and how decisions are made.

Simply put, you don’t know what you don’t know! While it may seem unfamiliar, Employee Ownership isn’t new to Canada. For example, Friesens Printing in Manitoba has been exploring Employee Ownership since the 1950s, and the model can be found across various industries nationwide. The Employee Ownership Trust legislation, however, is a recent development, having only been enacted in 2024. Looking to the UK as a model, we see a strong example of growth. In 2014, there were 152 employee-owned businesses; by 2022, that number had soared to over 1,000, and in less than two years, the total has now surpassed 2,000.

We have experience with employee ownership for companies ranging from 5 to 500 people. Reach out, and we’ll walk you through what it could look like for your business.

This is a very common and understandable concern. We have solutions that can help with affordability, including Share Freeze options, Employee Ownership Trusts which do not require employees to personally finance the company, and more. We will work with you to find a solution that meets all stakeholder needs.

Yes! As part of every transition, we work with a licensed valuator to conduct a valuation of your company so you can be confident you are getting what your company is worth.

There is no need to have a valuation done before beginning the Employee Ownership Transition process. We will help guide you through this in our initial feasibility phase.

Diligence level 1 is required for a valuation to establish an EOT.