From Founder to Steward: Navigating the Emotional Side of an EOT

When business owners consider an Employee Ownership Trust (EOT), most of the conversation focuses on tax benefits, governance structures, and succession planning. But there’s another dimension that rarely gets enough attention: the emotional journey.

Life After the Sale: 2-4 Years Inside an Employee Ownership Trust

Selling a business you’ve built over decades comes with a surprisingly profound identity shift. Shorts Corporate Finance Partner Andy Ryder sat down with two business owners: Nik Pratap of Pratap Partnerships and Andrew Mills, from T Allen Engineering for the Accountable by Shorts podcast. Both have experienced the EOT process and wanted to share their experiences with other founders considering this exit strategy.

The conversation reveals the human side of this transition: the pride, the fear, and ultimately, the sense of purpose that comes with letting go.

The day after: “It’s not yours anymore.”

For both founders, the time period immediately after completion was learning to embrace change in themselves, even if the business remained constant.

Nik Pratap described it as everything feeling the same, but different:

“The same sign was up, it was the same day. What changes is your personal situation, because when you have bad weeks you realise it’s nowhere near as bad as what you previously might have thought. The valuation you get for your business gives you an anchor you can measure the performance of your company against, and the people involved in the EOT gives you the confidence to get you through those rough weeks a bit more easily.”

For Andrew Mills, he described walking into the office on Monday morning after completing the EOT deal on Friday:

“It’s not yours anymore. That might sound drastic, but it does change your mindset. For someone who had lived and breathed the business for over 30 years, the reality of no longer being the sole decision-maker was a shock — even with months of preparation. The emotional weight of that moment is something every founder should anticipate. It’s not about regret; it’s about adjusting to a new role and a new rhythm.”

Preparing for the emotional shift

Both founders agreed that emotional readiness is as important as financial planning. Andrew Mills emphasised:

“You can prepare for it as long as you like, but day one still feels different.”

Here are some practical steps they recommend to help other founders adjust to their new reality:

1. Start early: Don’t just plan the mechanics of the deal — plan your future role. Will you stay on as a trustee, advisor, or step away completely?

1. Communicate openly: Transparency with employees and leadership helps ease your own transition. Knowing the team is prepared makes letting go easier.

2. Redefine success: Move from measuring personal ownership to measuring legacy and impact.

Transitioning from control to collaboration

For founders used to making every decision, shifting to a governance model can feel uncomfortable. For Andrew, he found making the shift from being the decision-maker to the collaborator early on helped everyone at T Allen Engineering ease into the EOT process:

“I had always been deeply involved in everything, which brought success but also significant stress. When planning to step back, I couldn’t simply hand new directors a manual, so I held several one-to-one conversations with those chosen for leadership roles before announcing it to the whole company. I set expectations, outlined rewards, and reassured them they’d earned their positions.”

“Having these new directors prepared and supportive before the public announcement helped reassure the rest of the employees about the company’s long-term stability. My advice: bring the senior management team in early so they can help communicate the change — it was extremely valuable.”

This isn’t about relinquishing control; it’s about empowering others. Bringing future directors into the loop long before the announcement proved invaluable. It gave them time to prepare, build confidence, and reassure employees that the business was in safe hands.

Finding purpose beyond ownership

Interestingly, both founders found that the EOT strengthened their sense of purpose. For Nik, he found fulfilment in the fact that although the business still has his name attached to it, Pratap Partnership will continue without him there:

“It feels like we’ve done something authentic — something that will carry on beyond me.”

For people-centric businesses, an EOT is a statement of values. It says: We care about our people, our culture, and our legacy. That pride becomes a powerful antidote to the initial sense of loss for business owners.

Advice for founders considering an EOT

For founders sitting on the fence between EOTs and other exit strategies, Nik and Andrew give this advice:

1. Don’t do it just for the tax benefits: If legacy and culture matter to you, EOT can be transformative. If not, it may not be the right fit.

1. Expect mixed emotions: Pride and relief will come, but so will moments of doubt. That’s normal.

2. Talk to others who’ve done it: Their insights will prepare you for the realities beyond the legal paperwork.

Final thoughts

Andrew put it simply:

“I want to walk away with my head held high — and always be welcomed back.”

That’s the essence of EOT. It’s not about walking away; it’s about passing the torch in a way that protects what you’ve built and empowers those who helped you build it.

Is an EOT right for your business?

If Nik and Andrew’s experiences with EOTs leave you wanting to learn more, contact Shorts’ Corporate Finance team for more information. Shorts was one of South Yorkshire’s earliest adopters of EOTs, and have extensive experience helping founders identify the best succession plan for their needs.