When most business owners think about succession, they picture selling to a third party - a competitor, private equity firm, or investor group. And while those are valid and often lucrative paths, they’re not the only options.

There’s a growing movement in Canada that’s offering entrepreneurs another way to exit: one that protects your legacy, rewards your team, and - thanks to new legislation - can be just as financially beneficial.

It’s called the Employee Ownership Trust (EOT), and if you’re serious about both profit and purpose, this model might be the one you’ve been waiting for.

Why Sell to Employees?

Selling a business is personal. You’ve poured years of effort into building something meaningful. For many of the entrepreneurs I work with, walking away isn’t just about cashing out. It’s about who takes over next and how the story continues.

That’s why I found my recent conversation with Tiara LeTourneau, CEO of Rewrite Capital Advisors, so energizing. Tiara is a leading voice behind Canada’s new EOT legislation, and she made one thing clear: selling to your employees doesn’t mean sacrificing value.

In fact, the new EOT model in Canada is built to ensure that owners are paid full fair market value - and can benefit from a $10 million capital gains exemption along the way.

What Makes the EOT Model Compelling?

Unlike a management buyout, where only a handful of executives typically become owners, EOTs allow broad-based employee ownership, often without requiring employees to invest their own capital. The trust holds the shares on behalf of employees, and profits are shared across the team.

Here’s why it matters:

• Protects company culture - You built something special. Selling to employees helps keep the culture alive.
• Keeps your business Canadian - EOTs reduce the chance of foreign takeovers or asset stripping.
• Delivers fair market value - This isn’t a discount model. You get paid what your business is worth.
• Offers major tax incentives - Qualifying EOT exits are eligible for a generous capital gains exemption, improving after-tax outcomes for sellers.
• Aligns with values-based leadership - If you care about impact, legacy, and people, EOTs offer a principled way to exit.

Is an EOT Right for you?

Not every business is a fit - but more are than you might think. This might be you, if:

You have a strong, engaged team
You want to see the business thrive beyond your ownership
You don’t have a clear successor in your family or executive team
You want to preserve your legacy and values
You’re open to a structured, gradual exit over time

One of the most important things Tiara emphasized is that EOTs still require structure, due diligence, and clear financial planning. They’re not a shortcut - but they are a strategic path worth exploring.

Don’t Just Sell - Transition with Intention

I work with entrepreneurs who are approaching the “what’s next?” phase of their business journey. And increasingly, we’re not just talking about valuation or taxes - we’re talking about legacy, values, and what feels right.

An EOT can be part of a broader wealth strategy that aligns your personal goals with a socially responsible business transition.

Let’s Map It Out

Whether you’re years away from a sale or ready to explore options now, the first step is understanding your financial landscape.

I offer a complimentary 1:1 Wealth Gap Analysis - a session where we map out your ideal exit, assess where you stand today, and explore strategies that align with your goals.

From there, we can explore different exit paths - EOTs included - to ensure you’re exiting your business on your terms.

DM me on LinkedIn LinkedIn or reach out via email to schedule your Wealth Gap Analysis.

And if you haven’t yet, I encourage you to listen to my episode with Tiara LeTourneau on The Cash Rich Exit Podcast. It’s a masterclass in innovation, strategy, and values-led leadership.

You’ve built a business that matters.
Now let’s design an exit that does, too.

TTFN - ta-ta for now!

Colleen

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