Models and principles are powerful, but they gain real meaning when grounded in lived experience. The following cases illustrate both successes and cautionary lessons. They show how internal succession plays out across different industries, structures, and jurisdictions.
When selecting cases, we prioritised those with public documentation or research backing. Some are full employee-ownership transitions; others are hybrid or share scheme transitions.
Case Study 1: Ord Minnett (MBO)
Background
Ord Minnett, a longstanding financial services firm in Australia, underwent a management buyout in 2019 when IOOF divested its stake.
Structure & Outcome
- The management team, with backing from aligned capital, acquired control.
- The transition preserved client relationships, culture, and continuity.
- The firm remained Australian-owned and independent.
Insights
- In businesses dependent on reputation and client trust, an MBO can preserve that continuity.
- External aligned capital supports liquidity without ceding control.
- A credible management team is critical to gaining lender confidence.
Case Study 2: Meld Studios (Australia’s first EOT-style transition)
Background
In 2021, Sydney creative/design consultancy Meld Studios announced it would transfer ownership to an employee trust (EOT style), becoming Australia’s first such transaction.
Structure & Implementation
- A discretionary trust now holds shares for the benefit of employees.
- The founders remain engaged in governance, while employee beneficiaries share in profits.
- The structure had to be adapted because Australia lacks a formal EOT regime.
Outcomes & Challenges
- Meld has become a reference point in Australia’s employee-ownership movement.
- The transition has generated attention, internal engagement, and positive cultural signals.
- Because the model is novel, there have been legal and tax complexities, particularly around structuring, valuation, and long-term incentives.
Lessons
- Even in a legal vacuum, founders can design trust-based transitions.
- Transparency and governance clarity are essential to staff confidence.
- The “first mover” burden is high — there were no local templates to follow.
Case Study 3: Riverford Organic Farmers (UK EOT)
Background & Transition
- In 2018, founder Guy Singh-Watson sold 74 % of shares into an Employee Ownership Trust. The goal was to lock in values, independence, and shared stewardship.
- By 2023/2024, Riverford increased profitability significantly: turnover rose to ~£110.3 million, and pretax profit jumped (from £2.6m to ~£5.2m).
Research & Performance
- A recent report by The Open University and Sustain examines Riverford’s journey in detail, focusing on governance, culture, and sustainability.
- Their transition shows how employee ownership, when executed carefully, can strengthen resilience, employee engagement, and alignment of long-term values.
- Employee engagement, governance practice, and transparency were core to Bank confidence and organisational stability.
Key Takeaways
- The EOT model in the UK has matured, with Riverford as a leading example.
- The financial performance post-transition offers a powerful counter to skeptics.
- The case highlights that transitions require continuous governance attention, not just a one-time restructure.
Case Study 4: Australian ESS Case Studies — NAB and Palm Springs
Background & Research
- A research report by the University of Melbourne (CLEO / Law Faculty) profiles National Australia Bank (NAB)and Palm Springs Ltd in their use of employee share ownership schemes (ESO).
- This is not a full buyout, but insight into how share schemes operate in practice — especially in Australian regulatory and cultural context.
Findings & Insights
- In both cases, management and employees viewed ESO more as incentives than as full ownership vehicles.
- The tax concession framework influenced how these schemes were structured and limited.
- The alignment of employee interests with firm performance was acknowledged, although causality was harder to prove.
Relevance
- These cases help bridge the gap between “ownershiplite” share schemes and full buyouts.
- They show how governance, communication, and incentive alignment matter in modest shareholding models.
- They also illustrate how Australia’s ESS regulatory environment shapes how much value schemes deliver.
Case Study 5: Tailored Freight (Cautionary MBO)
Background & Outcome
- Tailored Freight, a Victorian transport company, attempted a heavily leveraged MBO in 2025.
- The company collapsed into administration, with debts of over $4 million and over 40 job losses.
Lessons
- Over-leverage and overly optimistic forecasts are among the clearest threats in real transitions.
- Exit of key managers or revenue downturns that were not stress tested contributed to failure.
- Governance, fallback clauses, and protection mechanisms are not optional — they can be the difference between success and collapse.
Comparative Patterns & Insights
When we compare across cases, several themes emerge:
- Leadership strength matters: All successful transitions had credible managers or successors.
- Governance & transparency: Clear roles, dispute mechanisms, and board or trustee oversight were critical.
- Gradual transitions work better: Phased ownership, staged payments, or retained minority stakes reduce shock.
- Cultural credibility is vital: In EOT and ELBO models, employees must believe in the fairness and permanence of the model.
- Policy support influences scale: The UK model (with tax relief) enabled more widespread adoption.
- Financial discipline is non-negotiable: Even excellent transitions can fail under excessive debt or lost revenue.
Next Chapter: Australia in Context — Lessons from the UK, Canada, and NZ
Explore internal succession lessons from the UK, Canada and NZ and how clear legal frameworks combined with targeted tax relief create strong incentives for founders to consider employee-led succession.