In the heart of Toronto, Grantbook…a technology consultancy devoted to empowering philanthropic organizations…faced a turning point. Its co-founder, Peter Deitz, stood at the crossroads of succession. For Peter, stepping aside wasn’t just about closing a chapter; it was about ensuring Grantbook’s culture and mission would thrive for years to come.
Searching for A Successor, and a Values-Aligned Future
The journey began long before employee ownership became buzzwords in Canada. Back in 2016, Peter was already pondering the question: “Who will carry Grantbook’s torch?” The first attempt was a share purchase plan, a well-intentioned effort to give employees a stake in the company. But the reality was more complicated. Only a handful could participate, and it created inequity…some shared in ownership, others watched from the sidelines.
Years passed. By 2023, Peter was ready to fully depart, but the path forward was unclear. Traditional exits felt misaligned.
Peter reflected, “Expanding our share ownership plan wasn’t a viable route because the employee base didn’t have the cash available or interest necessarily in taking on that risk. We wanted a solution that preserved morale, safeguarded our people, and ensured incentives stayed connected to long-term growth.”
Then, a new possibility emerged: the Employee Ownership Trust (EOT), freshly supported by Canadian legislation. Here was a blueprint to turn the company into a shared endeavor, without saddling employees with financial burdens.
Peter emphasized this point, “The EOT model gave us that deep alignment with our B Corp values and reduction of thorny issues like buy-back liability, and inactive shareholders, and most importantly, it allowed us to keep ownership in the hands of those who contribute to the business every day.”
Why EOTs Became the Only Path that Protected Grantbook’s Mission
The EOT wasn’t just a legal structure, it was a solution to Grantbook’s most pressing challenges. Previous ownership models created divides between those who could buy in and those who couldn’t. EOT promised to erase these lines, making every employee a beneficiary. It also protected the company’s DNA; outside buyers might have altered its collaborative spirit, but EOT safeguarded continuity.
The road to EOT wasn’t taken lightly. Peter recalls, “The only other model considered was a share redemption paid out of cash flow, but this option would have exacerbated the share inequalities of our first employee ownership program and was ruled out. The elegance of the EOT model allowed me to exit freely, because without it, I don’t know if we could have found a solution that ticked enough boxes.”
The EOT model shone because it eliminated some of the divisive inequities sparked by the employee share purchase plan, it kept former employees from holding onto shares, automatically welcomed new team members as beneficiaries, and allowed for flexible profit-sharing, something Grantbook was already committed to. .
Designing an Ownership Model that Protected Culture and Empowered Employees
Grantbook’s shift to EOT was a masterclass in collaboration. The company sought wisdom from Sue Lawrence, a UK expert with decades of EOT experience, who helped map the journey. Legal architects at Canadian firms tackled the challenge of writing Canada’s first EOT trust deed, drafting creative structures to transition ownership.
Transparency was a guiding star. A year before the transformation, leadership shared the plan with the team, ensuring everyone understood this was a values-aligned exit and that, due to thoughtful financial planning, not only would total compensation packages be largely preserved, considerable upside awaited once Peter had been bought out in full. After thoughtful debate, Grantbook adopted a hybrid EOT: key positions could retain or earn into minority stakes,while the wider workforce benefited.
Not every step went smoothly. Initially, some employees imagined that “ownership” meant hands-on control or collective decision-making often associated with co-op structures. Grantbook clarified that while everyone shares in profits, strategic direction stays with the board and management in EOT-owned organizations. Education and open dialogue-built trust. Designing governance was another balancing act, ensuring the trust had enough authority for oversight, but not so much that it bogged down the company in bureaucracy. The result: a structure agile enough for an organization interested in growth and meeting the changing needs of the philanthropy sector.
What Happened After EOT: Culture Strengthened, Innovation Grew
On January 1, 2025, the EOT became reality. The effects have been palpable. Grantbook’s culture…always collaborative…grew even stronger. Clients, many of whom are mission-driven themselves, took comfort in the company’s commitment to equity. The buyout was funded from Grantbook’s own cash flow, preserving its financial health. Already, signs of progress are evident: engagement is up, innovation is on the rise, and employees are already seeing profit distributions.
Peter’s Advice to Founders: Go Slow, Ask Questions, Trust your Gut
Peter Deitz attributes Grantbook’s smooth transition to his own gradual retreat from daily operations—it gave the company space to grow independent leadership before the big ownership handoff. His counsel for other founders is simple: Talk to those who have walked this path, lean on expert advisors, and trust your gut. The right ownership decision, he insists, must fit the company’s soul.
The Legacy of EOT
Grantbook’s experience reveals the power and promise of an Employee Ownership Trust. By centering fairness, continuity, and shared values, the company didn’t just solve a succession problem…it reimagined what an exit could mean. In doing so, Grantbook set an example for other mission-driven organizations seeking to build a future where everyone has a stake.
