Month: October 2025

What if the future of your business wasn’t just about profits, but about people? Across Canada, a quiet revolution is shaping the way businesses operate, and the way communities thrive. It’s more than a financial model, it’s a mindset. It’s employee ownership. And when you own where you work, you care where you live.

At the heart of this movement is a story rooted in Altona, Manitoba, where Friesens Corporation began not just as a business, but as a community builder. From its earliest days, Friesens was more than a printing company, it was a family endeavor with a vision that extended beyond the bottom line.

David Friesen, former President and grandson of founder D.W. Friesen, recalls the origins of the company:

“Way back in the day, and I don’t know how far back… the words that I heard was that… they were trying to build a business for the family because it was DW and three sons in the business, and so they were really wanting to build a business that could support those four families. From that it grew into wanting to support the wider community…”

That shift…from family to community…was deeply influenced by DK Friesen, David’s father, who was not only a business leader but a passionate advocate for cooperative values. His involvement with the Altona Co-op, where he served as President of the Board of Directors, marked the beginning of a broader commitment to community-led ventures. His leadership during the Depression era, particularly in cooperative boards, laid the groundwork for Friesens eventual transition to employee ownership.

DK’s philosophy was simple yet profound:

“We are in this for each other,” he often said. “We need to be committed mutually to each other’s welfare and what it takes to achieve this.”

This mindset became a cornerstone of Friesens identity. As the company grew, so did its commitment to Altona and its people. Employee ownership wasn’t just a business strategy, it was a reflection of shared values, mutual respect, and a desire to build something lasting together.

When employees become owners, they don’t just gain a stake in the company, they gain a stake in the community. Jobs stay local. Decisions reflect shared values. And the ripple effect touches everything, from the pride people feel in their work to the strength of the local economy.

Employee ownership fosters innovation, accountability, and long-term stability. But it also builds stronger relationships, deeper roots, and a sense of purpose that extends far beyond the workplace.

Organizations like Tallgrass help facilitate this transition, guiding business owners toward employee ownership and ensuring that the legacy of their work…and their community…endures. By empowering employees to become stewards of the business, Tallgrass helps preserve not only the company’s future but the fabric of the community it serves.

Friesens journey is a testament to what’s possible when business and community grow together. It’s a legacy built on cooperation, shared ownership, and a deep belief in the power of people.

On October 16, 2025, Winnipeg hosted the Business Transitions Forum, a dynamic gathering of entrepreneurs, advisors, and investors focused on growth, succession, and the evolving landscape of business ownership. Among the attendees was Chad Friesen, CEO of Friesens Corporation, who returned with valuable insights for both Friesens and its sister company, Tallgrass.

Friesen described the forum as “a really good opportunity for us to connect with people who are thinking about business succession.” In a province where such conversations are often fragmented, the Forum offered a rare chance to bring together sellers, buyers, and advisors under one roof. For companies like Tallgrass, which are actively exploring employee ownership models, this kind of exposure is invaluable.

One of the central themes of the conference was building a business that buyers want. Friesen emphasized the importance of leadership continuity, especially in employee-owned organizations. “It’s even more important in an Employee Ownership Trust to have a solid management team in place,” he noted. Unlike private equity acquisitions, where new leadership may be installed, employee ownership relies on existing teams to carry the business forward.

For Friesen, the Forum reinforced the value of proactive leadership development. “If we thought about those fundamentals, they are still good things that make for a better business,” Friesen reflected. Even without plans to sell, acting like someone is assessing your value can drive better decisions and long-term sustainability. A few important lessons some owners have learned is that every business is unique, every sale is unique and the path to success will vary each time but remember this key advice: “Control what you can control – when you are going through this process …which is getting good people around you, write out what your plan is, and then stick to your plan. Don’t act rashly, over-react or act too quickly when an opportunity lands in front of you because you may end up selling too soon to the wrong person for the wrong value or you might end up buying the wrong thing at the wrong time from the wrong person.”

The economic outlook was another hot topic. While Friesen acknowledged that “the economic situation has stalled a lot of transactions,” he also noted a growing sense of optimism among attendees. Businesses with exposure to the U.S. market are feeling the pressure, as increased risk can lower valuations. Yet, the appetite for deals remains—many are simply waiting for more certainty before making their move.

A particularly relevant panel for Tallgrass was “Cash Out or Partner Up,” which explored liquidity strategies and the role of senior management in ownership transitions. Friesen challenged the misconception that Employee Ownership Trusts are prohibitively expensive. He explains, “In many circumstances, the owner is asked to take on risk or carry some of the debt in the deal. This is not unique to EOTs; it’s a common expectation across various buyer types.”

Despite the growing interest in employee engagement, Friesen observed a lack of emphasis on true employee ownership. “There’s a lot more focus on maximizing financial return on a sale,” he said, “but very little emphasis on actual employee ownership trusts.” He continues to advocate for broader recognition of employee ownership as a viable and impactful succession strategy.

Ultimately, Friesen left the Forum feeling privileged to share the Friesens and Tallgrass story. “People love the concept, and they love the story,” he said. “That helps make us a really good champion for employee ownership.” As the conversation around succession planning evolves, Friesen continues to lead with purpose, advocating for models that prioritize people, legacy, and long-term impact.

Employee Ownership Trusts (EOTs) are gaining traction in Canada as a compelling succession strategy for business owners who want to preserve their legacy, reward their team, and ensure long-term stability.  It’s a legal structure that allows a company to be owned collectively by its employees through a trust.  Unlike stock options or direct share purchases, EOTs offer a more inclusive and stable form of ownership, one that doesn’t require employees to invest their own money. 

Here are some key factors that help determine if your company is well-positioned to adopt this model:

STABLE FINANCIAL PERFORMANCE

EOTs require a business to generate consistent profits. This is because the trust often uses company earnings to repay the selling owner and fund ongoing operations. If your business has a reliable cash flow and a history of profitability, it’s a strong candidate.

PRIVATELY HELD STRUCTURE

EOTs are best suited for privately owned companies. Publicly traded firms or those with complex shareholder arrangements may face legal and logistical hurdles. If your business is privately held and you’re looking for a succession plan that keeps ownership internal, an EOT could be ideal.

STRONG COMPANY CULTURE

Businesses with a collaborative, values-driven culture tend to thrive under employee ownership. If your team is engaged, invested in the company’s mission, and open to shared responsibility, an EOT can reinforce and reward that culture.

LONG TERM VISION

EOTs are designed for sustainability, not short-term gains. If your business prioritizes long-term growth, community impact, and employee well-being over rapid expansion or exit strategies, the EOT model aligns well with your goals.

OWNER’S INTENT TO EXIT OR TRANSITION

If you’re a business owner planning retirement or a gradual exit, an EOT offers a way to transfer ownership without selling to external buyers. It allows you to preserve your legacy while empowering your employees.

EMPLOYEE READINESS

While employees don’t need to invest their own money, they do need to understand and embrace the responsibilities of ownership. Businesses that invest in employee education and governance training are better prepared for a successful transition.

An EOT isn’t a one-size-fits-all solution, but if you’re exploring succession options, it’s worth considering whether an Employee-Ownership Trust could be the right path forward.  A call to Tallgrass can help!

As industries grow through rapid technological advancement, the future of business hinges not only on innovation but on the strength and diversity of its leadership. 

One of the most powerful ways to secure that future is by investing in young leaders…those who bring fresh thinking, digital fluency, and a passion for sustainability and innovation.  And increasingly, companies are learning that employee ownership trusts (EOTs) offer a compelling model to attract, retain, and empower this next generation.

Young professionals today are not just tech-savvy, they’re purpose-driven.  They embrace tools like AI, e-commerce, and social platforms to scale impact, while also prioritizing ethical sourcing, environmental stewardship, and community engagement.  Their appetite for learning fosters cultures of agility and growth…qualities that are essential for navigating uncertainty and driving transformation.

To truly harness this potential, companies must do more than just hire young talent…they must give them a purpose in the business.  Employee ownership models, such as those supported by Tallgrass, offer a pathway to do just that.  By enabling younger team members to become beneficial owners, businesses can align personal and organizational success, deepen commitment, and foster long-term thinking. 

David Friesen, former CEO and President of Friesens Corporation, underscores this point:

“One of the major reasons I believe for Friesens success is not only the employee-ownership, but the fact that the people making the decisions about Friesens and where investments will be made are working in the business and they are all young…having people in their 40’s and 50’s that are invested is very important because they’re thinking of their career…and they can see an exit at whatever age it is.”

This model doesn’t just benefit younger employees; it creates a leadership ecosystem across generations.  When people at every stage of their career are invested in the company’s success, decision making becomes more grounded, energetic, and future-focused.  It also ensures continuity, as experienced leaders mentor rising talent and younger leaders bring fresh energy and ideas. 

For business owners, transitioning to employee ownership is a powerful way to preserve legacy while building resilience.  It’s a strategy that rewards loyalty, encourages innovation, and secures the kid of leadership that can carry a company forward through technological shifts, market changes, and generational transitions. 

The future of business isn’t just about adapting to change, it’s about building organizations where every leader, young and seasoned, has a personal stake in shaping what comes next.

In today’s rapidly shifting economic landscape, the question of succession planning is a pressing reality for thousands of business owners across Canada.

For those who have poured their lives into building a company, often a family-run business, the thought of passing it on is deeply emotional and complex. It’s not just about numbers on a balance sheet; it’s about legacy, values, and the people who helped build it.

As retirement looms for many business owners across Canada, less than half of these businesses have formal succession plans in place. Without thoughtful planning, many companies risk being sold to external buyers who may share an affinity to the legacy, the community, or perhaps even the country.

The Emotional Weight of Succession

Succession planning is one of the most emotionally charged decisions a business owner will ever make. It’s not just about choosing a successor; it’s about choosing the future of the company. Owners often wrestle with questions like:

• Is it in the best interest of the company for my children to take over?
• Will my successor honour the culture we’ve built?
• Will my employees be taken care of?
• Will the business continue to serve our community?

These questions are especially poignant in family-run businesses, where the company is often intertwined with personal identity and legacy. Letting go can feel like losing a part of oneself. And yet, doing nothing can jeopardize everything.

The Power of Employee Ownership Trusts (EOTs)

This is where Employee Ownership Trusts (EOTs) come in. EOTs offer a powerful, values-aligned solution to succession planning. By transitioning ownership to employees through an EOT, business owners can preserve their legacy, reward their team, and ensure long-term stability.

An EOT is a legal entity that holds shares on behalf of employees, making them beneficial owners of the company. This structure allows the business to remain intact, avoids disruptive ownership changes, and fosters a culture of shared purpose and accountability.

Key benefits of EOTs include:

• Business continuity: The company remains in the hands of those who know it best.
• Cultural preservation: Employees are more likely to uphold the values and traditions of the business.
• Employee engagement: Ownership fosters pride, motivation, and innovation.
• Financial stability: Owners can exit in a structured, tax-efficient way.
• Community stability: Employees are more likely to keep and grow jobs in the local community.

The Financial Barrier – and How Tallgrass Helps

Despite the clear benefits, the path to employee ownership is not without obstacles. The biggest hurdle is financial.

Chad Friesen, CEO of Friesens Corporation illustrates this point, “If an owner walks into their bank and says, ‘I want to sell my company to my employees,’ the bank will ask, ‘Do your employees have the money to buy it?’ And the answer is usually no. Then the bank asks, ‘Are you willing to finance most of the sale?’ And even the most generous owners…often in their twilight years…are hesitant to take on 15–20 years of financial risk. This is where Tallgrass steps in. Tallgrass helps de-risk the transition by injecting patient capital into the deal. This means the owner doesn’t have to finance the entire sale themselves. Instead, they receive some cash up front and accelerating the rest of the cash in a reduced repayment window, thus reducing their financial exposure and making the transition more feasible….”

Tallgrass also brings deep operational expertise. They know how to run employee-owned companies and guide owners through each phase of the transition…step by step. From structuring the trust to aligning governance and culture, Tallgrass ensures the process is not only financially sound but emotionally supportive.

A Legacy Worth Preserving

For business owners, the decision to transition to employee ownership is not just a financial one, it’s a legacy decision. It’s about choosing who will carry the torch forward. It’s about honouring the blood, sweat, and tears that built the company. And it’s about giving employees the opportunity to become stewards of something greater than themselves.

In a time when keeping businesses intact is more important than ever…for communities, for families, and for the economy…Employee Ownership Trusts offer a path forward that is both practical and profoundly meaningful. If you are a business owner contemplating your next chapter, consider this: What kind of legacy do you want to leave? And who better to carry it forward than the very people who helped build it?