Keywords

Employee Ownership, ETA, ESOP, Acquisition, Leadership, Business Strategy, Employee Engagement, Company Culture, Value Creation, Business Transition

Summary

In this episode of the Alternative Exit, host Andy Farquharson interviews Jeff Easterling, CEO of ART and Associates, who shares his unique perspective on employee ownership through the lens of entrepreneurship through acquisition (ETA). Jeff discusses the moral imperative behind his leadership style, the challenges and strategies involved in transitioning to an employee-owned company, and the cultural shifts necessary for success. He emphasizes the importance of collaboration, transparency, and the long-term benefits of employee ownership for both employees and business owners. The conversation also touches on the barriers to employee ownership in the ETA space and offers advice for business owners and ETA searchers considering this path.

Takeaways

• Geoff Easterling emphasizes the moral imperative behind employee ownership.
• The transition to employee ownership requires cultural shifts within the company.
• Collaboration and transparency are key to successful leadership in employee-owned businesses.
• Employee ownership can create a legacy that benefits both employees and owners.
• The acquisition process can be structured to minimize personal risk for the buyer.
• Long-term strategies are more beneficial than short-term profit maximization.
• There are significant barriers to understanding and implementing ESOPs in the ETA space.
• Business owners should consider employee ownership as part of their exit strategy.
• ETA searchers can find creative financing options through ESOP funds.
• Building a strong network is crucial for success in the acquisition process.

Chapters

00:00 Introduction to Employee Ownership and ETA

02:48 The Unique Perspective of Employee Ownership

05:48 Navigating the Acquisition Process

08:51 Moral Imperative in Business Leadership

12:12 Cultural Shifts in Employee-Owned Companies

14:47 Value Creation Strategies Post-Acquisition

17:50 Challenges of Transitioning to Employee Ownership

20:58 The Knowledge Gap in Employee Ownership

24:03 Advice for Business Owners and ETA Searchers

In this live episode from the EOA Conference in Telford, Andy sits down withIn this live episode from the Employee Ownership Association Conference in Telford, with Andreas Jørgensen, one of the architects behind Denmark’s renewed push for democratic ownership.

Andreas shares how a cold winter classroom at Yale, a pregnant French professor, and exposure to extreme inequality in the US set him on a path to dedicate his career to employee ownership and cooperatives. That journey ultimately led to the creation of Denmark’s first national think tank focused on democratic business models.

The conversation covers why Scandinavia forgot its own cooperative roots, how Denmark quietly rebuilt the infrastructure for democratic ownership, and why new legislation coming into force marks a genuine inflection point for employee ownership across Europe.

Key themes discussed

• Why employee ownership barely featured in Danish academic or policy circles for 30 years
• How exposure to US-style inequality changed Andreas’ worldview
• Pre-distribution vs redistribution and why ownership matters more than tax after the fact
• The scale of cooperatives in Denmark and why most employees don’t feel like owners
• The limits of “EO light” models in consumer cooperatives
• Building a movement and a knowledge base at the same time
• Denmark’s new Employee Ownership Company model and how it compares to the UK EOT
• Indivisible reserves, long-term stewardship, and preventing extractive behaviour
• Why democratic ownership is politically acceptable across party lines
• What other countries can learn from Denmark’s approach

Why this matters

Denmark went from almost zero employee-owned transitions to passing national legislation in under a decade. Not because of ideology, but because ownership structures solve real economic problems: succession, inequality, engagement, and long-term resilience.

This episode is a reminder that employee ownership doesn’t need reinvention. It needs infrastructure, patience, and people stubborn enough to stick with it.

Links

• Andreas Jørgensen and his work: https://demokratiskerhverv.dk/
• Learn more about employee ownership at abettermonday.me

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

Episode: Measuring What Matters - Jonathan Winchester on Customer and Employee Experience

In this live episode from the EOA Conference in Telford, Andy sits down with Jonathan Winchester, CEO of Insight6, a customer experience specialist who keynoted at last year's conference with a memorable twist: he mystery shopped the audience.

Key Takeaways:

Jonathan brings a unique outside perspective to employee ownership. Insight6 helps businesses transform customer experience through six methods: mystery shopping, inquiry handling, employee and client listening platforms, online feedback analysis, focus groups, customer journey mapping, and mentoring/coaching/training.

The conversation reveals a critical gap in how most organisations listen to their teams. Annual surveys with 30-40 questions that 50% of staff fill out begrudgingly, followed by months of board review and often no action. Jonathan shares the story of an optician where deep listening revealed the problem wasn't massive - it was the tea room. Old sofa, broken coffee machine, no milk. Basic stuff. But the CEO ripped it out over a weekend and satisfaction went up.

The key insight: CX is all about making people feel special through human connection. And that requires asking the right questions at the right cadence. Not annual surveys - regular net promoter scores every two months. Not questions written by "Mary" who doesn't understand what you're trying to achieve. And critically, taking visible action so people feel listened to.

Memorable Moments:

• "You bugger" - how attendees greeted Jonathan after last year's mystery shopping exercise
• EO businesses handle inquiries three times better than accountants (and twice as good as most sectors)
• The tea room transformation story and why deep listening matters
• "If you were me, what would you do?" - the simple question that unlocks real feedback
• Why asking the wrong questions is worse than not asking at all
• "No knobs" - the rule of business Jonathan loved hearing at the conference

Guest: Jonathan Winchester, CEO at Insight6

• LinkedIn: https://www.linkedin.com/in/jonathanwinchester/overlay/photo/
• Company: https://www.insight6.com
• Email: jonathan@insight6.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

Episode: The Power of People - Andrew Lane on Building Real Employee Ownership at Union Industries

In this high-energy live episode from the EOA Conference in Telford, Andy sits down with Andrew Lane, Managing Director of Union Industries, a Yorkshire-based manufacturer of high-speed industrial doors. If you've bought food from a supermarket, it's been through one of their doors somewhere in its life.

Key Takeaways:

Andrew brings a unique perspective: he led a failed employee ownership transition in 2008, learned from every mistake, and then joined Union Industries in 2014 specifically to spearhead their transition into employee ownership. His biggest lesson? Start from the right place. If an owner's primary motivation is "tax-free money," it's probably not the right decision.

Union Industries' former owners wanted their money over 14 years. The owner was 78. That's when Andrew knew they were in it for the right reasons. The business paid them off years early "because they'd done a benevolent transaction that empowered their employees."

The conversation dives deep into Union's distinctive approach: equal bonuses regardless of tenure or salary ("You can't be in it together, but I get more money than you do"), weekly financial updates with numbers-graphs-traffic lights for every learning style, and a managing director who walks the floor weekly to keep ownership real for every fabricator and welder.

Memorable Moments:

• The forklift truck driver who's been the biggest bonus recipient for five years straight
• Why Andrew spent his energy on the 20% who didn't care (spoiler: you can't convert them)
• The service division employee who created a marketing campaign that sold £30,000 in three weeks
• "Don't come with a problem that doesn't have a matching solution"
• Why the business took a step change when the detail-grinding bottleneck was removed
• Andrew's closing challenge: "Tell me the reason not to"

Guest: Andrew Lane, Managing Director at Union Industries

• LinkedIn: https://www.linkedin.com/in/andrew-lane-1b2b9815/
• Company: https://www.unionindustries.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

Episode: Building Ownership Culture from Day One - Shelley Poole on HR in Employee-Owned Businesses

In this live episode from the EOA Conference in Telford, Andy talks with Shelley Poole, founder of Wellington HR, who started her business in 2019 with the intention from day one to grow it into an employee-owned business. She also conducted doctoral research on employee voice in EO organizations, making her uniquely positioned to bridge academic research and practical implementation.

Key Takeaways:

Wellington HR proves that employee ownership can work at micro scale - they're a team of six (soon to be seven). Shelley waited until the business was financially sound before transitioning, not because of a magic number of employees, but because she wanted to demonstrate that EO "isn't all scary" when you have money in the bank and stable operations.

The conversation reveals a powerful insight from Shelley's doctoral research: people need information, but they also need to understand that information to have intelligent contributions to make. Otherwise, employee voice stays superficial - "where should we go for the Christmas party?" - rather than meaningful strategic input.

At Wellington HR, they practice radical transparency: everyone knows everyone's salaries, the team looks at P&L statements, and they spent significant time educating the team on how to read financials. Shelley's research identified that barriers to voice often come from how information is shared and made available, not just whether it's shared at all.

Memorable Moments:

• Starting a business in 2019: "Great year to be starting a business just as we go into a pandemic"
• The horror story: "When did you find out you were becoming employee owned?" "On the day we transitioned"
• Why salary transparency and financial education matter before expecting meaningful voice
• How HR can lead by example: consulting employees on maternity policy rather than just announcing it
• The succession gap: new leaders thrown in the deep end when founders exit without preparation
• Robert Oakeshott's legacy of dividing not just profit but power and voice

Guest: Shelley Poole, Founder at Wellington HR

• LinkedIn: [Shelley's LinkedIn Profile - you'll need to add this]
• Company: [Wellington HR website - you'll need to add this]
• Resource: Shelley's doctoral thesis summary available via Wellington HR

Sponsor: This episode is brought to you by EOT Expert by Christian Welsom – 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 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

What happens when a 9-year-old's sense of justice grows into a $2.2 billion investment banking career dedicated to employee ownership? In this episode, I sit down with John Hoffmire, research associate at Oxford's Center for Mutual and Co-owned Business and founder of an investment banking firm that facilitated massive ESOP transactions. John shares his unconventional journey from working with displaced farm workers in California to becoming a leading voice in employee ownership finance, revealing why he chose the challenging path of making employee ownership deals bankable.

We explore the financial realities behind employee ownership transitions, from the struggle to raise capital for EO-focused funds to the critical role of "bankable" CEOs in deal success. John opens up about the contradictions of working in high finance while staying true to his mission of economic justice, and introduces a revolutionary concept for expanding employee ownership globally through nonprofit surplus-sharing models. This conversation is packed with hard-won insights for anyone curious about the financial mechanics that make alternative exits possible.

Timestamps:

00:00 Introduction and Guest Overview
01:51 Early Career Path to Employee Ownership
02:10 From California Farm Workers to Finance
05:03 Why John Considers Himself "Lucky"
06:53 From Bain & Company to Investment Banking
08:01 The Discomfort of Corporate Contradictions
09:48 The 9-Year-Old's Revelation About Poverty
11:25 Why Investment Banking for Employee Ownership
20:55 Employee Ownership in Countries Without Tax Support
24:01 Nonprofit Surplus-Sharing as EO Alternative
28:28 The Dignity Principle in Employee Ownership
33:36 Transition from Practitioner to Academic
37:08 Policy Advice: Start with One Case Study
39:53 Quick-Fire Questions
41:37 Contact Information and Wrap-Up

Key Takeaways:

• How childhood experiences with poverty and injustice can shape a lifetime career in economic democracy
• The fundamental challenge of raising capital for employee ownership funds when you're giving away majority control
• Why "bankable" leadership matters more than perfect financial structures in EO transitions
• The critical importance of dignity as a first principle in employee ownership design
• Why starting with one successful case study beats creating perfect policy frameworks
• The role of community organizers in building sustainable employee ownership ecosystems
• How going public became an alternative solution when private fundraising failed

About John Hoffmire:

John Hoffmire is a research associate at the University of Oxford Center for Mutual and Co-owned Business and director of the Center on Business and Poverty. He holds a PhD from Stanford and co-hosts the annual Oxford Symposium on Employee Ownership. John founded an investment banking firm that facilitated approximately $2.2 billion in ESOP transactions and has dedicated his career to promoting inclusive economic development through innovative financial structures and employee ownership.

Connect with John:

Website: cobap.org
Linkedin: https://uk.linkedin.com/in/john-hoffmire-5999621

Connect with Andy Farquharson:

LinkedIn - https://linkedin.com/in/andyfarquharson/
Instagram - https://instagram.com/andyfarq
Website - https://abettermonday.me/
Email - andy@bettermonday.me