Blog: Employee Ownership – Exciting Opportunities

Employee Ownership (EO) is an established model that works across the UK and is increasingly being adopted by businesses across Wales.

If you are thinking of selling your business, EO is a realistic option, where the buyers are people you know and trust.

Recent Welsh research shows that Employee Ownership can boost profitability, productivity, job security and employee well-being. It is making a vital contribution to our economic growth in challenging economic times. It works for exiting business owners, new employee owners, our communities and the economy.

There are three main models of Employee Ownership. Direct employee ownership, where employees become individual owners of shares; Indirect employee ownership – where shares are held collectively on behalf of all employees via an Employee Ownership Trust (EOT); or a hybrid model, combining both direct and indirect share ownership. The models are flexible enough to suit the circumstances of any organisation and this of course forms the basis of initial discussions with our team.

Employee Ownership can be relatively easy to implement and can be readily tailored to the circumstances of an individual business. It is a model that works across a wide range of sectors and at any stage of life; from exciting start-ups to mature businesses with owners looking for a succession option.

For a private company owner wishing to retire but looking for an alternative to a trade sale, employee ownership is certainly worth considering.  It places the business in the hands of people who understand what makes it work, those who have a strong personal commitment to its long-term success and are highly motivated by their new ownership status to make it flourish. After having invested in the people that have helped make the business what it is today, why not consider giving them a form of ownership? After all, it is your legacy as the business founder/owner that they are continuing.

We are all aware of the need to engage with our employees; how do we help maintain the values that we share in our businesses? How do we ensure that people are committed, driven and feel part of the success of a business? Employee Ownership can help with these issues. In an EOT scenario (the fastest growing model), staff have a meaningful relationship with the business’s goals and a clear shared purpose, without any personal investment or changes to employment status.

Selling your business to your employees is obviously a big decision to make, but with us by your side, you and your business are in very safe hands. Whether you’re considering a full-blown transition to employee ownership via direct share ownership, going down the EOT route or using a mixed model, our team of experienced specialist consultants can help you manage the process smoothly. We can work with you to set the business on the correct path to EO and work with the new owner-employees to ensure that hard fought for legacy, is built on into the future. Employee Ownership really is an exciting opportunity and shows that our businesses, people and communities can benefit from a different way of selling and buying a business.

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