Employee ownership can be a way of selling your business or act as a route to a partial exit as part of business succession plans. To become an employee-owned organisation, an Employee Ownership Trust (EOT) is often set up, which means that employees acquire a majority stake in the business as a group. This is held on trust, with employees then becoming involved in decision-making, strategy and direction via a committee.
The potential economic benefits of employee ownership are recognised by the government. Employee ownership can improve performance, and employee-owned companies often have a positive culture, greater employee participation, and a committed workforce.
In conversation with Grant Santos, CEO of Educ8, who transitioned to employee ownership in 2022
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Employees at South-west based printing company, Handy Brand, acquired a 51% majority stake in the company this year, with guidance and advice from GS Verde Group.
GS Verde supported throughout the entire process, with multidiscipline dealmakers working as one team to advise on company structure, carry out due diligence, raise funding, and draft new contracts and agreements.
“Without our excellent team members and loyal customers, Handy Brand’s success would be nowhere near what it is today. That’s why I decided to set up the Employee Ownership Trust scheme, to show my huge appreciation for their unwavering professionalism and empower their future development for many years to come.” – Martyn Kilford, owner of Handy Brand
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“The acquisition by Winncare marks the start of an exciting new era for our business. Over the last few years, we have spent time appointing the right people and the right teams in order to grow and with the strength of Winncare behind us, there is the opportunity to escalate this further. I predict a very bright future for us in the pressure area care sector.” – Sean Spencer, Managing Director, Herida Healthcare
As with any business transaction, how long employee ownership takes will depend on the parties involved and other factors, such as securing HMRC clearance for an EOT. Working as one team, GS Verde reduces the chance of delays and proactively works to address areas that could cause a deal to stall.
An EOT can suit a range of businesses, from high-profile corporations to family businesses considering their succession plans. As a Group, we understand your specific commercial needs and what is important to you, preventing unforeseen issues.
All the support you need, under one roof
The process of selling a business involves several stages, each requiring specialist advisers. At GS Verde, we work as one Group to create your complete business sale advisory team, helping you navigate the journey from planning and strategy to pre-sale preparation, and finally to successful completion. As deal-making experts, the GS Verde Group offers all the necessary expertise under one roof.
To find out if a Private Equity sale is the best route for you and your business, contact us.