How employee ownership expands a fractional CFO’s value
- Zarin Kresge
Fractional CFOs are increasingly expected to do more than manage the numbers—they’re expected to help owners solve their toughest strategic challenges, including selling a business. One powerful, underutilized solution? Employee ownership.
Offering employee ownership (EO) services allows fractional CFOs to deepen client relationships, differentiate their practice, and unlock new advisory revenue streams.
In this post, I’ll explore why and dive into how EO is a strategic opportunity that fractional CFOs shouldn’t miss—with insights from Christine Rico, the founder and consulting CFO of CFO on Speed Dial.
What is employee ownership?
First, what is EO, anyway?
Put simply, broad-based employee ownership is a business model where employees have an ownership stake in their company and share in the financial value they help create. Common structures include Employee Stock Ownership Plans (ESOPs), worker cooperatives, and Employee Ownership Trusts (EOTs).
Some of the country’s largest companies are employee-owned, including Publix Super Markets, WinCo Foods, Black & Veatch, and Burns & McDonnell Engineering.
A business can start as employee-owned, but many transition to EO through leveraged buyouts.
How knowing about EO helps advisors better serve their clients
Here are some reasons to consider EO for your clients and why specializing in EO services can strengthen your advisory practice:
- The Silver Tsunami is crashing: Over half of all business owners in the U.S. are over 55, and many lack a succession plan.
- Selling a business isn’t easy: As business owners retire, few have family members willing or able to take over, and many struggle to find an outside buyer.
- EO meets selling owner key considerations: EO delivers market value to owners, provides liquidity, offers process control, delivers tax benefits (depending on the EO model), allows owners to preserve their legacies, and keeps employees retained.
- EO delivers improved employee engagement and productivity: Research shows that both increase through EO.
- EO creates a marketing advantage: “One other reason owners should contemplate EO is that it is a marketing advantage in a world where consumers are increasingly moving their spending to brands that are aligned with their values,” Christine said.
How fractional CFOs can support business owners
Fractional CFOs can provide valuable advice and support to small business owners considering a transition to EO:
- Financial planning and analysis: Develop comprehensive financial plans and conduct detailed financial analyses to ensure a smooth transition.
- Valuation services: Determine the market value of the business to facilitate the employee ownership process.
- Cash flow management: Ensure that the business maintains healthy cash flow during and after the transition.
- Tax planning and compliance: Provide guidance on tax implications and ensure compliance with relevant regulations.
- Strategic advisory: Offer strategic advice on structuring the employee ownership plan and managing the transition process.
- Employee communication and training: Assist in communicating the transition plan to employees and provide training on their new roles and responsibilities.
EO: a strategic opportunity for fractional CFOs
There are several benefits for fractional CFOs who provide employee ownership advisory services to small businesses.
Access to a growing, underserved market
As more owners approach retirement without a clear successor in place, demand for advisors who understand EO continues to rise. Fractional CFOs with EO expertise can position themselves in a specialty area where client need is high, and advisor supply remains limited.
Higher-value, more complex engagements
EO transitions require advanced financial modeling, deal structuring, and multi-year planning. These are high-trust, high-value engagements that move fractional CFOs beyond transactional work into strategic leadership roles.
Longer-term, stickier client relationships
EO transitions rarely end at closing. Many fractional CFOs continue supporting companies through post-transaction financial strategy, governance support, and ongoing fractional leadership, creating more durable revenue streams.
“EO companies are very engaged partners on financial strategy,” Christine explained. “This makes them ideal clients for a fractional CFO business. The worker-owned companies I work with are committed to consistently pushing for improvement in profitability and cash flow while also balancing that with commitments to their workforce.
“I also rely on the values alignment as part of the brand identity for CFO on Speed Dial,” she added.
Clear differentiation in a crowded advisory market
Many fractional CFOs offer similar core services. EO expertise signals strategic depth and positions them as partners in one of the most important decisions a business owner will make.
Get started with EO for your practice
As more business owners seek values-driven succession plans and communities look to retain local businesses, the demand for advisors well-versed in employee ownership continues to grow. For advisors, gaining EO expertise isn’t just a way to better serve clients—it’s a smart, future-forward move that sets them apart in a rapidly evolving marketplace.
If you’re interested in exploring EO further, our new EO Advantage course, Employee Ownership for Fractional CFOs—taught by Christine, whom I interviewed in this post, and Dave Policano, the founder of Policano Consulting—is designed specifically to help you build confidence and competence in this area.
Offering employee ownership services allows fractional CFOs to differentiate their practice, deepen client relationships, and unlock new advisory revenue streams. EO expertise positions CFOs to support business owners with succession planning, valuation, tax strategy, and long-term transition planning—areas where clients increasingly need strategic guidance.
Fractional CFOs should be familiar with the most common employee ownership models, including Employee Stock Ownership Plans (ESOPs), Employee Ownership Trusts (EOTs), and worker cooperatives. Each structure has different tax implications, governance considerations, and financial mechanics, so understanding these differences helps CFOs guide clients toward the most appropriate option.
