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081024 | Chris Budd

"Today, we’re excited to be joined by Chris Budd, a prominent advocate of Employee Ownership Trusts (EOTs) and the founder of The Eternal Business Consultancy.

Chris is the author of multiple of books, one them The Eternal Business: How to Transition a Business for the Employee Ownership Revolution, draws on his own experience of selling his business, Ovation Finance, to an EOT.

That transition was earlier in the evolution of the EOT, since then Chris has been an evangalist for using EOTs to provide business owners with a sustainable way to preserve their legacy, pass on control to employees, and ensure long-term business success.

Chris, welcome to the Alternative Exit!

Interview Questions:

You are passionate about the employee ownership, why do you think it is so important that employees hold a stake in the businesses they work in

How employee ownership will save humanity

IFthey have a stake,

Community is fun.

What first led you to explore employee ownership as a succession strategy, and how did it transform your own business, Ovation Finance?

(Encourages Chris to share his personal story, motivations, and insights from transitioning his own business to employee ownership

Felt trapped

The job of the owners is to make them redundant

Sell to

Financial wellbeing

EOT doesn’t mean that you get less

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The Eternal Business Consultancy⁠

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Your book, The Eternal Business, outlines a detailed roadmap for business owners considering an EOT. Can you share some key steps from your book that are essential for a successful transition?

(Focuses on practical advice and some of the core ideas from his book that have helped other businesses implement EOTs successfully

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The Eternal Business Consultancy⁠

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I made all of the mistakes to

Too quick >

Personality business, min 2 year job

Benefits,

engaged employees

I don’t work for the business and

Do the transition before the transaction

The EE voice is very important

EEs have a voice not a vote - indirect owners

Seperate body in the governance Educate

Governance - Optimium role of the trustee boardbusiness

Board > Leadership > Employee > Trustees

Trustees

Employee Group

Leadership

Owners

They are still in the way

You’ve worked with a diverse range of businesses through The Eternal Business Programme. What common traits do successful EOT transitions share, and how can companies best prepare for this shift?

(Highlights lessons learned from his experience advising companies and key success factors for a thriving employee-owned business model

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The Eternal Business Consultancy⁠

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Success

Purpose, a business that has a beating heart. Prove your values.

Owners have an exit plan

Time - what is included in the transition

Education

Governance

Process

Stage 1

Owners

Leadership

Employees

Training for the trustees

Training for the leadership team - we are devolving decision making

Failure

Self-importance, no independent board, no leadership team, SLT with expectations of a buy out, unrealistic expectations

Indirect ownership, very unlikely that it will ever be sold.

Share of the profit v share of the equity

Looking ahead, what trends do you see shaping the future of employee ownership, both in the UK and globally? Are there new models or innovations that you’re particularly excited about?

(Encourages a forward-looking perspective on the evolving landscape of employee ownership and how new ideas and frameworks might reshape the field.)

These questions should help create a compelling and insightful discussion on employee ownership, covering Chris’s personal journey, his experience with EOTs, and his vision for the future of business succession.

Fast round

Fast round of questions. I ask you a 3 questions and you offer a quick response. Does that sound ok?

Who is the leader you most admire in EO? DEB OXLEY, collaboratively, listened,

What is your favourite resource on employee ownership? There aren’t many. Fredereic Lalouse, Leadership, all you nneed to know by David Pendletow

What would you say to an business owner sitting on the fence re: employee ownership. Don’t just talk to accountants,

Thank you.

Thank you so much for your time and sharing your thoughts with us today.

Books -

Where can people follow you if they would like to learn more?

“Fairness Dragon” - Campbell McDonald

One of the unique aspects of EOTs is that they enable a smooth transfer of control without employees needing to raise capital. How does this structure impact employee engagement and long-term sustainability?

(Discusses how the EOT structure fosters a sense of ownership and commitment among employees, leading to stronger engagement and business outcomes.)

What advice would you give to business owners considering an EOT as part of their succession planning? What should they prioritize in the early stages?

(Provides practical guidance for owners just starting their journey, drawing from his consulting experience and the key strategies outlined in The Eternal Business

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The Eternal Business Consultancy⁠

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You’ve mentioned that many business owners are hesitant about the transition process, even if they’re interested in employee ownership. What are the biggest barriers you see, and how can owners overcome them?

(This question allows Chris to address common challenges, such as readiness and cultural fit, and how The Eternal Business Programme helps business owners prepare

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The Eternal Business Consultancy⁠

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