“When it came time for us to think about succession, the thought of finding someone to buy us out seemed highly improbable. We have a very distinct niche in the manufacturing world, and there wasn’t any obvious path forward.”

– Tom Adams (right, standing with George Chittenden), co-founders and now employee-owners of Adams and Chittenden Scientific Glass

Background 

Adams and Chittenden Scientific Glass was started in 1993 by George Chittenden (left) and Tom Adams (right), two skilled glassblowers who had minimal business experience. Over the course of 25 years, their business has become well regarded worldwide for its intelligent designs and for the quality and accuracy of its custom glassware (think tools for science). As their business is highly specialized, they now find themselves in a dilemma shared by many impending retirees. Their situation is increasingly common: they are seeking an exit strategy that works for them and for their employees. Tom put it this way; “When it came time for us to think about succession, the thought of finding someone to buy us out seemed highly improbable. We have a very distinct niche in the manufacturing world, and there wasn’t any obvious path forward.”

Tom began scientific glassblowing in 1971, working for a shop in Berkeley, which George joined in 1984, having previously apprenticed for several years with a European-trained glassblower. Less than a decade later, an investor with a Master’s degree in business (but no experience in scientific glass) bought that business. Within three years, Tom, the production manager, left, and George, concerned about his future in the hands of the new owner, panicked. He went to Tom with a half-baked idea that turned into their now thriving company, Adams & Chittenden.

Becoming employee-owned

Tom and George first looked at the idea of employee ownership through the National Center for Employee Ownership, an organization specializing in Employee Stock Ownership Plans (ESOPs). After an initial consultation, however, it became clear that an ESOP wasn’t workable at their scale. In March 2017, Tom was listening to NPR when he heard Alison Lingane, the co-founder of Project Equity, discussing their approach to helping another Berkeley business, one facing a similar situation to their own; transition to employee ownership. So, he contacted Project Equity, and the transformation at A&C began. 

Transmitting a combined 80+ years experience in an idiosyncratic field isn’t trivial and the thought of passing on this accumulated knowledge in a short amount of time concerned both George and Tom. Would it really be possible for someone else to step into their shoes given the time frame? After all, when George and Tom started, they, themselves, weren’t seasoned business people, but they learned. George noted, “hiring Project Equity as a third party brings objectivity to the table for the employees. The straightforward honesty with which they approach the work is credible and valuable. They help the employees understand that we are operating in good faith.” As they transition their employees to owners, Tom and George notice their employees paying greater attention and taking responsibility for the work and the business. Project Equity also helps Tom and George continue doing what they do well—blowing glass and running the business. “Before engaging with Project Equity, the process seemed daunting and relatively obscure, not to mention impossible to imagine as an additional burden” continued George. “Project Equity’s guidance and support in the formulations of issues such as bylaws, decision-making tools, legal help, and the financial pieces have made it easier than we thought. They’ve delivered it in a clear and accessible format.”

Business transition logistics 

Outcomes

Tom is older than George and is on track to retire sooner. But hopefully, they will both be able to continue to enjoy the work as they begin their “glide path out.” As employee-owners, they can continue to support the business and reputation they have built from scratch, and help shepherd in the next generation of scientific glassblowers. They have no doubt that this old-style craft can and will continue to be relevant in this century. And for them, slowing down feels like the natural order of things.