When is Employee Ownership the right model?
There are some key qualifying factors that make a business eligible for employee ownership, but generally companies of any sector and size could suit the structure, from high-profile corporations to family businesses.
Most importantly, employee ownership is about giving the workforce a 'significant and meaningful' stake in the business. This means employees must have both a financial stake, such as owning shares, and a say in how the business is run, known as employee engagement.
With this in mind, there are several situations that are prime opportunities for employee ownership.
Succession planning - For entrepreneurs and business owners, a succession plan is crucial regardless of how far in the future the actual event may be. Employee Ownership establishes a natural progression that sets up an exit route for owners at a later date, while ensuring a transitional period where employees have a greater say in the strategic direction of the business.
Growth and expansion - Broadening ownership to include most or all employees can reflect the need to attract, retain and motivate talented people. These individuals can help drive overall business performance with a view to expanding your services, client base or even geographic footprint.
Starting as you mean to go on - Employee Ownership can be integrated into a company from the outset, ensuring the benefits of incorporating the values and ethos of collective ownership into the foundation of your business.
How does a business become employee-owned?
As with any major business transaction, specialist advice is vital. With experts across multiple disciplines, the GS Verde Group understands your specific commercial needs, and what is important to you to help navigate the deal process.
As a Group, we are able to support business owners through the entire Employee Ownership process.
Our corporate finance experts can provide valuable insights to benefit your financial modelling and business valuation, as well as helping to secure the right funding for this transaction.
GS Verde's legal advisors support you through the necessary legal demands a deal such as this requires, including deal structuring and drafting the key shareholder agreements.
Meanwhile, our tax division can provide specialist tax efficiency planning services to ensure your business take advantage of the reliefs available.
To discover more about employee ownership and find out if it is the right route for you and your business, speak with our advisors.