For most founders, the day you sell your business is both exhilarating and terrifying. You’ve poured years - sometimes decades - into building something meaningful. And when it comes time to step away, you want more than just a big number on a cheque.

You want to leave behind a legacy.
You want your team taken care of.
You want the brand to thrive beyond you.

That’s where smart succession planning - especially through structures like an Employee Ownership Trust (EOT) - can help you make a graceful, values-aligned exit.

What’s wrong with the usual path?

Too many exits are transactional. A buyer shows up with the right price (often private equity), promises to scale, and within 12-24 months, things change.

People are laid off.

The culture shifts.

Customers notice.

Your original mission might disappear altogether.

The founder gets the payout but is left with regret - or worse, reputational risk. And that’s just the emotional toll.

Poor planning also leaves money on the table. Especially when owners skip due diligence or delay tough decisions until it's too late.

Start early, plan wisely

You don’t build a business overnight. And you can’t exit one responsibly without time and intentionality. The sooner you start asking the right questions, the more options you’ll have.

• Is your corporate structure optimized for a sale or transfer?
• Are your financials clean and easy to understand?
• Do you know the value of your business today—and what increases it?
• Have you thought about how your team fits into the next chapter?

These aren’t “end of year” tasks. They’re part of running a business well.

The rise of the Employee Ownership Trust (EOT)

In Episode 323 of the Cash-Rich Exit Podcast, I sat down with Jennifer Williams, founder of Firefly Insights and a leading voice in Canadian succession planning. Her insights on EOTs were not only practical - they were inspiring.

For years, Canada lagged behind countries like the UK and the US when it came to supporting employee ownership. But the game is changing. The federal government’s 2024 tax legislation introduced new incentives, making EOTs a viable, tax-advantaged path to succession for private business owners.

In Jennifer’s words: “Employee ownership doesn’t mean giving away your business. It means selling it - to people who already believe in it.”

Here’s why this matters

• EOTs let you sell your company at fair market value
• You get the chance to preserve your company culture
• Your employees get a meaningful stake in the outcome
• The business stays locally owned and purpose-led
• And now - with tax advantages - it’s finally financially competitive with other sale models

It’s not just a feel-good story - it’s good business

Planning your exit through an EOT doesn’t mean sacrificing your financial goals. Done right, it can still yield a solid payout. But more importantly, it sets up the next generation of leadership for success.

And let’s be honest - team retention and brand trust are major contributors to business value. An EOT can help keep both intact during the transition.

Is an EOT right for you?

Not every business is a fit. It depends on your goals, your timeline, and your financial position. But it should absolutely be on your radar - especially if you care about long-term impact.

If you're a founder who wants to go beyond the exit - to turn ownership into a legacy - I encourage you to listen to my conversation with Jennifer Williams in Episode 323. Her breakdown of how EOTs work, who qualifies, and what the new tax rules mean is something every founder should hear.

Listen to the episode now

Ready to explore your options? Connect with me on LinkedIn or book a 1:1 Wealth Gap Analysis. Let’s talk strategy, structure, and success - on your terms.

TTFN - ta-ta for now!

Colleen

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