Employee ownership

Is employee ownership the right exit strategy for you and business? If your company is based in Scotland, we can give you up to three days free support via an experienced adviser to help explore your options.

Laurence Odie-9943-001.jpg

What is an employee-owned business?

An employee-owned business is one where the employees, rather than external shareholders, hold a significant stake (majority of shares) in the company.

It's a proven business model to better engage, reward and attract staff.  

It's also a succession option that allows you to exit your business at your own pace, safeguard jobs and improve employee engagement.

It allows you to achieve a fair price for your business and there can be tax advantages in selling your business to your employees.

 

How does it work?

The employees would have an individual shareholding, or hold shares indirectly using an Employee Ownership Trust. Many companies combine trust and share ownership in what's often called the hybrid model.

There is no one model of employee ownership. The structure can be shaped to fit with your company and your aspirations as an owner.

The usual process is to form an Employee Ownership Trust, which purchases the shares from the owner. The Trust holds the shares on behalf of the employees.

The company’s management still run the company, with the board of directors responsible for the success of the business.

Jerba Campervans team
Balhousie Glazing-008.jpg

What are the benefits?

Employee ownership gives employees a meaningful stake in their organisation together with a genuine say in how it is run.  It roots business in Scotland, drives performance and delivers economic wellbeing.

You, the business, and the employees will benefit from:

  • Competitive price and guaranteed exit for the owner
  • Safeguarding the future of the business
  • Ownership and leadership transfer at low risk
  • Enhanced employee engagement
  • Increased productivity and innovation
  • Attracting and retaining high-quality talent

How we can help

We can help you decide on the best model of employee ownership for you and your business. 

Once you've submitted your enquiry an adviser will be in touch to discuss your needs. To help inform this discussion they will ask for a copy of your business plan and, if available, the last three years' of your company accounts.

nik-macmillan-280300-unsplash.jpg
concept-idea-innovation-212286.jpg

Know your options

To help you decide if employee ownership is the right exit strategy for you and business, we'll give you up to three days free support via an experienced adviser.

This support will review all business succession options open to you.

What happens next?

Where employee ownership is identified as a potential exit solution, we'll undertake an employee ownership feasibility study.

This report will examine potential ownership structures, governance, management, funding and how a transition would occur.

Find out more

Is employee ownership the right business model for you? Get help from our succession planning experts.