If you are a business owner thinking about exiting or succession, Employee Ownership is an increasingly popular option. There are several potential advantages to Employee Ownership versus other options like a trade sale or Management Buyout (MBO).
What is Employee Ownership?
Employee Ownership is where the current owner sells all or part of the company to its employees. It is an effective form of succession planning for business owners who want to secure the future of the business and retain a motivated workforce.
Employee Ownership: the advantages
For both the business owner and the workforce, Employee Ownership offers a host of potential benefits. These include:
- Employee Ownership can offer a smoother exit compared to selling on the open market
- Creating the conditions for a quicker sale as it avoids time spent seeking potential buyers
- Confidential information and data is not made available to competitors through Employee Ownership
- It can often be the optimum way of safeguarding the business, the brand and the workforce
- The business retains a highly motivated and invested workforce, versus an open sale or MBO.
There may also be scope for Employee Ownership, if correctly planned and structured, to offer tax savings to both parties involved.
A track record of delivering successful Employee Ownership
Consilium Chartered Accountants have a team of Corporate Finance experts with a proven track record of delivering Employee Ownership. Alongside our portfolio of MBOs and trade sales, Consilium have been trusted advisers to business owners and employee groups across Scotland.
For a confidential discussion about succession planning and Employee Ownership options, contact our lead Partners John Blair and Linzi Wilson. Alternatively, learn more about succession planning and Employee Ownership advisory services from Consilium.