Why a Bay Area IT Firm Made the Transition From Owner-Operated to Worker-Owned to Secure Its Future

Mar 12, 2025

46 mins

Episode Description

Meet Jerry Skomer, founder of Alternative Technologies, an IT and telecom services company that supports Bay Area nonprofits and progressive businesses. Jerry faced a crucial challenge: how to preserve the company’s values, protect employees’ jobs, and ensure continued community service. His solution? Transforming Alternative Technologies into a worker-owned cooperative. The transition wasn’t easy—COVID-19 included, Jerry financed a third of the sale, structured an earnout over six years, and retained management hiring control for three.

In this episode, you’ll hear about:

Balancing Agility and Risk Aversion
Trusting the Process
The Role of a Task Force
Sharing the Risk

Click here to watch this episode on the Zolidar YouTube Channel.

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CHAPTERS

(00:00) - - Introduction and Personal Philosophy
(04:36) - - Transitioning Out of Business Ownership
(07:02) - - Planning the Exit Strategy
(08:35) - - Forming the Task Force
(10:52) - - Navigating the Pandemic's Impact
(13:22) - - Understanding Business Valuation
(15:34) - - Exploring Employee Ownership
(17:47) - - Financing the Transition
(20:10) - - The Role of the Lender
(22:12) - - Trusting the Process of Transition
(25:56) - - Transitioning to Governance: A New Role
(28:51) - - Building a Supportive Team for Transition
(32:13) - - Navigating Legal Complexities in Co-op Formation
(33:08) - - The Impact of Technology on Transition Processes
(39:13) - - Reflections on Employee Ownership as an Exit Strategy
(42:06) - - Proud Achievements and Lessons Learned
(43:09) - - First Steps for Business Owners Considering Exit
(45:19) - - Call to Action
(46:03) - - Podcast Outro

Key Terms Used in This Episode:

CONNECT WITH ALTERNATIVE TECHNOLOGIES

Website: https://www.alternativetechs.com/
Zolidar's Community: https://zolidar.com/community/organization/alternative-technologies-serviceprovider-TlxChE

REFERENCED IN THIS EPISODE:

Jerry Skomer (Former Owner & President): https://zolidar.com/community/person/jerry-skomer--tpXKob
Shared Capital: https://zolidar.com/community/organization/shared-capital-cooperative-capitalprovider-RkCkLV
Project Equity: https://zolidar.com/community/organization/project-equity-capitalprovider-JCzVcW

Click here to view the episode transcript.

Note: This podcast is not investment advice and is intended for informational and entertainment purposes only. The views expressed in this episode are solely those of the guest(s) and do not necessarily reflect the opinions of the host or Zolidar.

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Why a Bay Area IT Firm Made the Transition From Owner-Operated to Worker-Owned to Secure Its Future

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