Employee Ownership Transitions
A practical alternative to a third-party sale—designed to fit your business.
Employee ownership offers a practical path for owners who want to exit on their own terms, keep their business rooted in the community, and create lasting opportunity for the people who helped build it.
At Firefly Insights, we guide you through the entire process—from exploring your options to designing and implementing a transition plan that fits your business.
Can Employee Ownership Work for Your Business?
“I think my business is too small for something like this”
“I don’t think my employees could afford it”
“Will I get fair value for my business?”
These are concerns we hear often—but employee ownership is highly customizable and can be tailored to fit a wide range of businesses, ownership goals, and financial realities.
At Firefly Insights, we help business owners explore models like Employee Ownership Trusts (EOTs) and Employee Share Ownership Plans (ESOPs), and sometimes hybrid solutions. Whether employees buy in, the company finances the transition, or a trust holds the shares, we design structures that reflect your goals, values, and financial reality—while helping you get fair value for the business you have built.
Why Business Owners are Choosing Employee Ownership
Transition on Your Terms
Create a transition plan that fits your goals, your timeline, and your team—without selling to a third party.
Keep Ownership in the Community
Employee ownership helps businesses stay rooted in Canada—and in the local communities they support—preserving jobs, leadership, and long-term impact.
Strengthen Retention, Resilience, and Performance
Research shows employee-owned companies are more stable during economic downturns, experience lower turnover, and often see stronger overall performance—helping protect and grow what you have built.
Secure Fair Value – and Explore Potential Tax Savings
Employee ownership offers a market-value exit. Some structures, like Employee Ownership Trusts, may also provide access to significant tax benefits, including the $10 million Lifetime Capital Gains Exemption.
Make ownership more than a structure—make it your strategy.
Is Employee Ownership Right for You?
Employee ownership is not a one-size-fits-all solution—but it is often a great fit for owners who:
Want to see the business continue in a way that reflects their values
Are thinking ahead about succession, even if a sale is years away
See long-term potential in their team or leadership
Would prefer the business stay in their community rather than be sold to outsiders
If you are thinking about what comes next—and want a transition that prioritizes people, continuity, and control—employee ownership could be worth exploring.
Our Process
Clear, collaborative, and tailored to your business.
Feasability
We start by deeply understanding your goals, team, and financial landscape. Whether you are considering employee ownership, a third-party sale, or another path, we provide a clear, unbiased recommendation—grounded in strategy, stakeholder input, and what will actually work for your business.
Design and Implement
After the right path is chosen, we take the lead in bringing it to life—coordinating governance, financing, and employee engagement while working closely with your legal and tax advisors. We guide the detailed design of the structure, draft agreements, and prepare employees through clear education and communication—ensuring the plan holds up in practice, not just on paper.
Support
After the transition, we continue to support governance, communication, and long-term alignment—working closely with new employee owners to build understanding, strengthen engagement, and support the shift in mindset that ownership requires over time.
What Business Owners Ask Us Most
What is employee ownership, and how does it work?
Employee ownership means your business is sold to your employees—either all at once or gradually—using structures like Employee Ownership Trusts (EOTs), Employee Share Ownership Plans (ESOPs) or hybrid approaches. These models are designed to keep the company locally owned, protect jobs, and allow employees to become long-term stewards of the business.
How does employee ownership get funded?
There is no single model. In some cases, employees buy shares directly. In others, a trust or the company itself finances the purchase on their behalf. The structure depends on your goals, the financial capacity of the business and its employees, and how ownership is being transferred.
Some transitions involve employee contributions—others do not. What matters is designing a structure that fits your business and what is realistic for your team.
At Firefly Insights, we help you understand your options, assess feasibility, and build a plan that works.
Is Employee Ownership only for large companies?
Not at all. Employee ownership can work for businesses of many sizes—from independent shops to professional firms. What matters more than size is having a strong team, steady cash flow, and an owner who wants to plan intentionally.
At Firefly Insights, we typically work with companies ranging from 10 to 500 employees—helping them explore options that reflect their goals and capacity.
Why choose Employee Ownership over a third party sale?
A third-party sale often means handing your business over to an outside buyer—someone who may change leadership, restructure the team, or relocate operations. You may have less say in how the transition unfolds, or what happens to the people and culture you have built.
Employee ownership offers a different path. It keeps the business in trusted hands, supports continuity in leadership and operations, and can be structured to reflect your goals, timeline, and values—all while providing fair market value for the company.
What are the tax implications of selling to employees?
Each transition is unique. We work closely with your legal and financial advisors to ensure the sale is tax-effective and compliant. In many cases, employee ownership models can offer favorable tax outcomes for the exiting owner.
How long does the transition process take?
Timelines vary, but most employee ownership transitions take 6–24 months from planning to implementation. We tailor the process to your needs and guide you every step of the way.
Do I need to fully exit the business?
Not necessarily. With employee ownership, you can sell part or all of the company—and stay involved for as long as it makes sense. Some owners continue in their role for years, while others step back gradually or focus on mentoring the next generation. In some cases, employee ownership is used as a growth or retention strategy—not just a succession plan.
It is about designing a transition that fits your goals, your timeline, and the needs of the business.
Let's Talk
Curious about how it works—or if it’s even possible for your business? Let’s start the conversation. You’ll walk away with clarity and next steps, no pressure.