Alternative Exit
Alternative Exit is a dedicated to educating small business owners about the possibilities, benefits, and challenges of transitioning to an employee ownership model.
There are over 200m SMEs with an owner who will be retiring in the next 10 years, many of which will never find a buyer for their business, forcing them to close their doors.
There is an alternative. This show will explore various the different forms of employee ownership and best practices for successful transitions.
Each episode features interviews with experts in employee ownership, business owners who have made the transition, and consultants who facilitate these changes.
Alternative Exit
Alternative Exit #35 | From 15 to 340: How Scotland Built a Global EO Powerhouse
How do you transform an entire country's approach to business succession? In this episode, I sit down with Glen Dott, a specialist advisor in employee ownership at Cooperative Development Scotland, part of Scottish Enterprise. Glen shares the remarkable story of how Scotland went from having just 15 employee-owned businesses to over 340 in less than a decade, making it a global leader in the EO movement.
We explore the pivotal role of the Nuttall Review in 2014, the psychology behind why business owners choose employee ownership over traditional exits, and the practical challenges of financing EO deals. From his farming background that sparked his interest in cooperatives to his front-row seat watching Scotland's EO revolution unfold, Glen provides unique insights into what makes successful transitions work and how government support can catalyze grassroots movements.
Timestamps:
00:00 Introduction and Guest Overview
01:11 Glen's Journey to Employee Ownership
02:29 Owner Motivations Beyond Money
03:43 From Farming to Scottish Enterprise
05:20 Glen's Role in EO Advisory
07:25 The Dramatic Growth in EO Awareness
09:39 Consistent Lead Flow and Market Maturity
11:04 Tax Benefits Driving Uptake
12:18 Financing EO Deals - The Reality
20:47 What Makes Successful EO Transitions
25:23 Professional Management vs Entrepreneurial Founders
27:42 The Kemco International Success Story
30:33 Entrepreneurial Orientation in EO Businesses
33:19 Scottish Government Goals and Results
35:19 Accelerating EO Growth - Lessons from Northern Ireland
38:07 Quick Fire Questions
41:51 Where to Connect with Glen
Key Takeaways:
- Why most EO-bound owners have motivations beyond money and want businesses to remain local and intact
- How Scotland's EO sector exploded from 15 to 340+ businesses, with 60% being Scottish-headquartered
- Why most EO deals are financed through deferred consideration over 5-10 years rather than bank lending
- How strong company culture and democratic decision-making are prerequisites for successful EO transitions
- Why "Freedom Day" (debt payoff) psychology matters for employee motivation during transition periods
- How Northern Ireland's grassroots, privately-funded approach is accelerating EO growth faster than top-down models
About Glen Dott:
Glen is a specialist advisor in employee ownership at Cooperative Development Scotland, a unit within Scottish Enterprise. With a farming background that gave him early exposure to cooperative models, Glen has been instrumental in Scotland's remarkable EO growth story. He manages lead flow for potential EO transitions, supports feasibility studies, and has helped develop Scotland into one of the world's leading EO regions through practical support, market building, and policy development.
Connect with Glen:
LinkedIn: https://linkedin.com/in/glen-dott-512b141a/?originalSubdomain=uk
Website: https://scottish-enterprise.com/
Connect with Andy Farquharson:
LinkedIn - https://linkedin.com/in/andyfarquharson/
Instagram - https://instagram.com/andyfarq
Website - https://abettermonday.me/
Email - andy@bettermonday.me