By Ben Lightfoot, CEO and Business Coach.
An employee-led buyout (ELBO) is one of the most practical and values-aligned succession pathways a founder can choose. It can preserve culture, protect continuity, and creates genuine long-term stewardship by transitioning ownership to the people who know the business best.
But while the transaction mechanics matter, an ELBO succeeds or fails on something more fundamental: the people involved, and how well they are supported through change.
In my work as a CEO and business coach, I’ve seen that succession is rarely “just” a share transfer. It is a leadership transition, a mindset shift, and a new operating reality for everyone involved. Blue Harbour Capital’s approach recognises this and, importantly, their program is designed to work closely with experienced independent business coaches like myself, alongside the legal, tax and transaction specialists required for a successful transition.
This matters because coaching helps two groups navigate two different challenges at the same time:
- The founder moving from operator to steward.
- The management team moving from managers to owners.
Why coaching matters in an ELBO
There is a simple truth that shows up in most successions: the deal can complete smoothly, and the transition can still wobble afterwards.
That is why high-quality succession planning increasingly includes a structured post-transaction plan and leadership support, not just legal documentation. Blue Harbour’s own succession guide builds this in through a focus on a 100-day plan, clear communication, and coaching support for new owner-leaders.
As a coach, I look at ELBO coaching as practical risk management. It reduces the “people risk” that can quietly undermine a good transaction: unclear roles, slow decisions, leadership tension, and cultural drift.
Coaching for the owner: letting go with clarity and confidence
For many founders, the toughest part of succession is not valuation, due diligence, or structuring.
It is letting go.
Owners often carry the business in their identity, their relationships, and their daily habits. Even when the successor team is capable, founders can feel a pull to stay involved “just in case”. The result can be a half-step transition where the founder is no longer officially in charge, but still remains the default decision-maker. That is exhausting for the owner and disempowering for the new team.
Coaching supports founders to make a deliberate shift from doing to enabling.
What coaching helps an owner do in practice
- Define your post-deal role, and stick to it
Whether you stay on as Chair, advisor, or exit fully, clarity is key. Agree boundaries upfront and honour them. - Move from “manager” to “mentor” in a healthy way
If a founder stays involved, the role needs to be guidance, not override. The “mentor, not manager” mindset is often the difference between a confident new leadership team and a hesitant one. - Hand over decision rights, not just tasks
A real transition is not only delegating work. It is delegating authority. Coaching helps owners practice stepping back while still protecting continuity. - Prepare emotionally for the next chapter
A practical succession plan needs a personal plan too. Coaching helps a founder define what “good” looks like after the handover.
Coaching for the management team: moving from managers to owners
Most successor teams in an ELBO are highly competent. They know the business, the customers, and the team. But ownership introduces a different set of responsibilities.
Ownership requires confidence in decision-making, comfort with accountability, and a stronger grasp of financial stewardship and governance. In Blue Harbour’s guide, this is framed plainly: ownership is a mindset and a long-term responsibility, and without support even capable managers can struggle to succeed as owners.
What coaching supports for new owner-leaders
- Confidence in decision-making without the founder as tie-breaker
Many teams slow down after a transition because decisions that used to default to the owner now need a shared process. Coaching helps establish clear decision rhythms. - Healthy leadership dynamics inside the new owner group
Power dynamics shift when peers become co-owners. Coaching provides a structured space to align on “how we lead together.” - Financial stewardship and capital allocation thinking
New owners need to move beyond managing budgets to stewarding cash flow, debt commitments, reinvestment, and long-term value. - Governance discipline
Ownership works best when the business runs on cadence and accountability, not personality. Coaching reinforces the habits that make governance effective.
One line from the guide captures this well: ownership is a mindset, and it takes time and support to develop.
The first 100 days: where the transition becomes real
In many ELBOs, the early post-deal period is the true test. This is when employees, customers, suppliers, and lenders quietly look for signals of stability.
A well-designed 100-day plan reduces uncertainty and builds momentum. In Blue Harbour’s framework, that plan includes aligning people, performance and purpose, communicating clearly with employees, customers and suppliers, and delivering early wins that create a stable foundation.
From a coaching perspective, this is also when new owner-leaders need the most support. Not because they are incapable, but because they are carrying new weight while the organisation is watching closely.
Coaching during the first 100 days typically focuses on:
- leadership alignment and role clarity,
- decision cadence and accountability,
- communication consistency,
- and the practical shift from “running the function” to “leading the enterprise”.
Blue Harbour’s roadmap explicitly recognises that Year 3 execution includes launching the 100-day plan and supporting new owners with governance and systems.
What it looks like to “build coaching in” without blurring roles
To be very clear: coaching is a profession with its own ethics, confidentiality, and methods. In the best succession programs I see, coaching is provided by independent coaches working alongside the transaction and succession advisory team, not as a bolt-on and not as a substitute for good deal execution.
That is why I appreciate Blue Harbour’s approach. They focus on structuring and executing the succession pathway, and they collaborate with external coaches to ensure the people-side is properly supported.
Here is a simple way to think about it:
Phase 1: Pre-transaction readiness
- founder role and legacy clarity,
- successor readiness assessment and development priorities,
- alignment on decision-making and future leadership structure.
Phase 2: Transaction period support
- managing pressure and uncertainty,
- strengthening communication inside the leadership group,
- preparing for staff and stakeholder messaging.
Phase 3: Post-transaction coaching cadence (first 100 days and beyond)
- weekly or fortnightly leadership sessions early on,
- reinforcing governance rhythm,
- building confidence in owner-level decisions,
- maintaining momentum through measurable priorities.
This alignment between advisory work and coaching support is also reflected in the guide’s emphasis on engaging the right advisors, including coaching support, and designing a post-deal coaching and governance framework.
A closing thought for founders considering an ELBO
If you are exploring an ELBO, it is worth asking one question early:
“Who is supporting the humans through this transition, not just the transaction?”
Because an ELBO asks a lot of people at once. It asks a founder to step back with intention. It asks managers to grow into owners. And it asks the wider team to trust a new chapter.
When coaching is built in thoughtfully, you create the conditions for continuity and confidence. The owner exits in a way that protects legacy, and the new owner-leaders step forward with the capability and composure to lead.
If you are considering an ELBO pathway, Blue Harbour Capital can guide the succession strategy and transaction execution, and work alongside trusted independent business coaches to support the leadership transition that happens after the paperwork is signed.
By Ben Lightfoot, CEO and Business Coach
