Month: September 2025

Chad Friesen attended the recent Employee-Ownership Canada 2025 Conference, a landmark event marking the unification of two major movements…the old ESOP Association Canada and the newly established Employee Ownership Trust (EOT) Coalition…into a single, shared organization. This merger, which took place in July 2024, culminated in a record-breaking turnout and a renewed sense of energy and purpose within the employee-ownership community.

Chad represented Tallgrass and Friesens Corporation at the conference and received two plaques recognizing their financial and leadership contributions to employee ownership in Canada. He participated in a panel discussion and provided observations based on his experience managing an employee-owned company.

Key Takeaways and Reflections

With EOT legislation only recently enacted in 2024, the conference celebrated the first three Canadian companies to successfully transition to EOTs:

• Brightspot Climate
• Taproot Community Support Services
• Grantbook

Their stories served as powerful proof that Employee Ownership Trusts are not only viable but transformative. During his keynote, Jason Kenney, former Premier of Alberta, linked employee ownership to economic and political challenges, highlighting its potential for fairer wealth distribution. Chad agreed, stressing that employee ownership is especially timely and important now.

Tallgrass: A Patient Path Forward

Chad acknowledged the challenges Tallgrass has faced in its journey, particularly the slower-than-expected progress in helping other businesses take that first step towards an employee ownership transition. However, the conference reaffirmed that Tallgrass is on the right path. He highlighted the financial barriers that often prevent owners from transitioning their companies to employee ownership, especially when traditional financing options fall short. Tallgrass’s unique value proposition lies in its ability to “de-risk” these transitions by offering patient capital and operational expertise, making it easier for sellers to embrace employee ownership.

Culture as the Cornerstone

During his panel discussion with Grant Wilde (Spartan Controls) and Brendan Friesen (Centra Construction Group), Chad emphasized the cultural foundations of employee-owned companies. While financial benefits are important, he stressed that true transformation comes from fostering engagement, awareness, and shared values. He shared examples from Friesens, such as the “In My Company…” campaign and the deliberate act of handing out physical cheques during EOT distributions…small but meaningful gestures that reinforce the company’s commitment to its people.

Chad also recounted a defining moment during the COVID-19 crisis in 2020, when the Friesens Corporation Board prioritized keeping employees financially whole despite economic uncertainty. This decision, rooted in the company’s values, set Friesens apart from many other businesses and reinforced its identity as a people-first organization.

He explains, “That was a very distinct difference between our company and publicly traded companies or even most private companies. Those types of moments build credibility within your team, and it ultimately leads to the fact that we have a better retention rate – not just because we share profits with everyone but because we have a culture where people feel part of a family and that we are in this together…. those are the proud moments where we can say we truly operate very differently.”

Looking Ahead

The conference inspired Chad and gave him new insight: there are many routes to employee ownership. Some companies start with ESOPs before switching to EOTs, while others take different approaches. The core objective is inclusive, long-term ownership.

With continued support from both the Friesens Board and the Tallgrass Board, Chad remains committed to advancing employee ownership in Canada. His leadership and advocacy are helping pave the way for a more equitable and resilient business landscape.

Employee-Ownership Trusts (EOTs) are gaining traction in Canada as a forward-thinking solution for business succession and long-term sustainability.  This model allows employees to collectively own a company through a trust structure, fostering shared responsibility and inclusive governance.

WHAT IS AN EMPLOYEE-OWNER TRUST?

An EOT is a legal entity that holds shares of a company on behalf of its employees.  Unlike traditional ownership models where shares are owned by individuals or external investors, employees are the sole beneficiaries of an EOT that owns the shares.  The structure is designed to be long-lasting and inclusive, with all employees benefiting from the company’s success.

HOW DOES IT WORK?

1. Formation of the Trust: A trust is created to hold the company’s shares.  Trustees are appointed to oversee the trust and act in the best interests of the employee beneficiaries.
2. Transfer of Ownership: The current owner sells their shares to the trust.  This can be done all at once or gradually over time.  The sale is often financed through company profits, external financing, an investor like Tallgrass, or a combination of the three.
3. Employee Beneficiaries: All employees become beneficiaries of the trust.  While they don’t hold shares directly, they receive dividends and may have a voice in governance through Board representation or advisory committees.
4. EOT Distribution:  Dividends are distributed to employees based on criteria such as tenure or earnings. These distributions are separate from regular compensation.
5. Governance and Oversight: Trustees manage the trust and ensure that decisions align with the long-term interests of the business and its employees. Governance structures may include employee councils or advisory boards to facilitate communication and transparency.

THE TALLGRASS DIFFERENCE

Tallgrass is the opposite of private equity firms.  While most private equity firms seek to extract maximum profit within 5-7 years, Tallgrass’ patient capital doesn’t require a return on investment for the first several years.  This allows the seller to exit sooner, the business to afford the transition, and for employee-owners to start participating in dividends sooner.

EOTs offer a structured, equitable way to transition ownership while maintaining business continuity. By placing ownership in the hands of employees, EOTs promote stability, engagement, and long-term value creation. For business owners considering succession options, exploring an EOT is a strategic and value-driven choice.

What if the success of one company could spark a movement…one that empowers employees, strengthens communities, and builds lasting legacies? 

That’s the idea behind the Tallgrass Employee-Owner Equity Fund, an initiative backed by Friesens Corporation, Canada’s oldest employee-owned company.  It’s more than an investment vehicle; it’s a mission to help other businesses transition to employee ownership and experience the transformative impact it can have. 

Friesens has lived the employee-ownership journey.  Founded in 1907 and employee-owned in some form since the 1950s, Friesens has grown into Canada’s largest independent book manufacturer.  Their success is rooted in a simple belief: the company exists to serve the needs of customers, employees, and the community. 

Today, Friesens is owned by an Employee-Ownership Trust (EOT), with 600 employees as its beneficiaries.  This model has created a culture of accountability, pride, and shared purpose, one that continues to drive innovation and growth.

At Tallgrass, we know employee ownership works. And we believe it can work for others.  That’s why we created the Tallgrass Employee-Owner Equity Fund, an investment initiative designed to help other businesses transition to employee ownership using the Friesens formula.  Tallgrass isn’t just about funding; it’s about mentorship, experience, and building a community of like-minded companies. 

Ask yourself what if your business could:

• Empower your employees to become owners?
• Strengthen your community through shared prosperity?
• Preserve your legacy in a way that reflects your values?

The Tallgrass mission is to build a family of employee-owned companies, creating new wealth for employees, strengthening our communities, and growing value for all stakeholders.  It’s a bold vision rooted in the belief that employee ownership isn’t just good for business, it’s good for people.

If that resonates with you, maybe it’s time to explore what employee ownership could mean for your business.  We’re ready to invest in your legacy, for the benefit of your employees, your customers, and your community.

Succession planning is one of the most critical and often overlooked challenges facing family-owned businesses today. When it’s time to pass the torch, many owners struggle to find a path that protects both their legacy and the livelihoods of their employees. That’s where Tallgrass steps in.

Tallgrass specializes in guiding businesses through the transition to employee ownership. As a trustworthy partner and investor, Tallgrass makes the process easier and more affordable, helping owners unlock financial rewards while ensuring their company continues to thrive under the stewardship of those who helped build it.

The journey to employee ownership isn’t just theoretical, it’s rooted in real experience. Friesens Corporation, Canada’s oldest employee-owned company, began its transformation in the 1950s. What started as DW Friesen & Sons, a family-run business, evolved into a community-focused enterprise.

David Friesen, former CEO and direct descendant of DW explains how it all began, “(Originally)…. it was DW Friesen and his three sons in the business and so they were really wanting to build a business that could support those four families and from that it grew into wanting to support the wider community.”

By the 1980s, the Friesens family recognized the need for a sustainable ownership model and began shifting shares to employees. Today, Friesens stands as a testament to the power of shared ownership.

Tallgrass builds on this legacy, offering a proven model for businesses that care about more than just the bottom line. Through the Tallgrass Employee-Owner Equity Fund, they invest not only in companies, but in people and communities.

If you’re a business owner looking to preserve your legacy, empower your team, and secure your company’s future, employee ownership may be the answer, and Tallgrass is ready to help you get there. Let us invest in your legacy.