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#5 | Revolutionising Business Exits with Employee Ownership Trusts with Derek Razo
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Episode Summary:
In this episode of The Alternative Exit Podcast, host Andy Farquharson talks with Derek Razo, Co-Founder and Managing Partner of Common Trust, about the transformative role of Employee Ownership Trusts (EOTs) in helping business owners transition ownership to employees while preserving company legacy and culture.
Derek highlights the benefits of EOTs as an effective alternative to traditional exits, especially for small to mid-sized businesses, and shares how this model fosters a culture of collective ownership and profit-sharing. Join the conversation to understand how EOTs are not only changing business succession but also reshaping communities by promoting shared wealth.
Key Takeaways:
- How EOTs empower employees to share in the company’s success.
- How employee ownership helps preserve business legacy and culture.
- Why EOTs are more accessible and scalable than ESOPs.
- How employee ownership transforms communities by creating local wealth.
- The essential role of an ownership culture in driving business resilience.
Resources Mentioned:
- Text-Em-All - https://www.youtube.com/@TextEmAll
About Derek Razo:
Derek Razo, Co-founder and Managing Partner at Common Trust, is a leading expert in steward ownership transitions and has been instrumental in advancing the movement for purpose-driven business structures since 2016. He has co-founded influential organizations like Purpose International and Purpose US, which popularized the use of Perpetual Purpose Trusts for mission protection.
He has served as an investor, advisor, and delivery partner for businesses shifting to stakeholder and purpose ownership models. With a computer science and business background from UC Berkeley, Derek’s diverse experience spans from founding cooperative and open source businesses to collaborating on community-led projects in affordable housing and indigenous-led funds.
Connect with Derek Razo:
- LinkedIn - https://www.linkedin.com/in/derek-razo-b758a7270/
- Website - https://www.common-trust.com/
Connect with Andy Farquharson:
- LinkedIn - https://www.linkedin.com/in/andyfarquharson/
- Instagram - https://www.instagram.com/andyfarq
- Website - https://abettermonday.me/
- Email - andy@abettermonday.me
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