Alternative Exit #32 | The Honest Truth about Employee Ownership: Lesson from Founder Turned Advisor

Alternative Exit

What happens when a founder realizes they're no longer the most passionate person in the room about their business's future? In this episode, I sit down with Chris Maslin, who made the bold decision to transition his accounting firm Maslin to an Employee Ownership Trust (EOT) in 2021. Chris opens up about the personal moment when he recognized his team's excitement for growth had surpassed his own, and how this realization sparked a journey toward employee ownership that would transform both his business and his life.

We explore the messy realities of transitioning ownership and leadership simultaneously—something Chris admits they "did a fairly bad job of" initially. From navigating the 30-30-40 rule of employee engagement to creating a hybrid ownership model that combines EOT benefits with direct share ownership, Chris shares hard-won insights about what really works in employee ownership. Now helping other small businesses through GO EO, he brings both founder and advisor perspectives to the challenges of making employee ownership accessible and affordable.

Timestamps:

00:50 Introduction and Chris's EOT Journey
03:21 What Sparked the Transition to Employee Ownership
05:05 The Challenge of Transitioning Ownership and Leadership
08:23 Employee Engagement and the 30-30-40 Rule
12:25 The Reality of Employee Mindset in Ownership Models
17:45 Creating a Hybrid EOT Model with Direct Share Ownership
23:46 Advising Others: Common Questions from Business Owners
29:46 EOT Sales vs Traditional Trade Sales
32:33 Preparing for Employee Ownership Transition
35:06 Advice for Business Owners on the Fence

Key Takeaways:

• Why losing passion for growth can be a signal it's time to transition ownership
• The importance of clearly defining roles and responsibilities during leadership transitions
• The 30-30-40 rule: 30% of employees will embrace ownership, 30% can be engaged with effort, 40% view it as just a job
• How a hybrid EOT model can balance collective ownership with individual stake and accountability
• Why direct share ownership creates both upside potential and downside risk for key employees
• The advantages of EOT sales: control over process, minimal haggling, and tax benefits
• Common valuation challenges when owners have unrealistic expectations about business worth
• The importance of having a clear post-sale purpose and role definition
• Why EOT works best for founders who genuinely care about staff and long-term business future

About Chris Maslin:

Chris Maslin transitioned his accounting firm Maslin to an Employee Ownership Trust in 2021, serving as both founder and employee trustee during the transition. Now working with GO EO, he helps small businesses (5-50 employees) navigate affordable EOT transitions. Chris brings a unique perspective having experienced employee ownership from both sides—as a business owner making the transition and as an advisor helping others through the process.

Connect with Chris Maslin:

LinkedIn: https://linkedin.com/in/chris--maslin/
Website: go-eo.uk

Connect with Andy Farquharson:

LinkedIn - https://linkedin.com/in/andyfarquharson/
Instagram - https://instagram.com/andyfarq
Website - https://abettermonday.me/
Email - [email protected]