We love catching up with founders who have taken the leap into employee ownership. In this Owners Session, we sat down with Brad Herrmann, CEO & Founder of Text-Em-All — the first SaaS company in the U.S. to transition to an Employee Ownership Trust (EOT).
Brad shared what led them to choose an EOT over options like ESOPs or private equity, how they customized the deal to reflect their values, and how the transition played out internally. His reflections offer a candid look at the real work of becoming employee-owned — beyond the transaction itself.
Key takeaways:
- The path to EOT wasn’t linear. After exploring ESOPs and DIY options, Text-Em-All abandoned a nearly finalized ESOP in favor of an EOT for its simplicity and flexibility.
- They customized the deal to fit their values. The company opted for no bank financing and structured their share redemption plan around cash flow, building in adaptability and alignment.
- Employee ownership works without stock. Employees don’t hold individual shares — instead, they receive profit-sharing based on tenure and salary, reinforcing collective stewardship.
- Transparency was essential. Open-book management, regular communication, and clear framing of the trust’s purpose helped the team fully buy into the new model.
- It’s not just about the exit. For Brad, staying engaged in the company’s success and helping employees build wealth over time has been deeply meaningful.
