Herrington Carmichael’s Corporate team advised the owners of a long-established provider of commercial fit-out, refurbishment and facilities management services on the transition of the business to employee ownership through the sale of a majority shareholding to an employee ownership trust (EOT).
The Client
A long-established provider of commercial fit-out, refurbishment and facilities management services that delivers projects across a range of sectors, including commercial fit-out and refurbishment, warehouse and racking solutions, electrical and sustainable energy services, civils and groundworks, and mechanical and renewables.
The Challenge
The shareholders wished to implement a succession and ownership strategy that would preserve the company’s culture whilst rewarding employees for their contribution to the business. To achieve this, the shareholders proposed the sale of an 80% interest in the company to an Employee Ownership Trust (EOT). The transaction involved a number of interconnected legal, governance and tax considerations.
Our Approach
The Herrington Carmichael Corporate team provided comprehensive legal support throughout the Employee Ownership Trust transaction. Our work included:
- Advising on the implementation of the Employee Ownership Trust structure and the sale of a majority shareholding in the company to the EOT;
- Preparing and negotiating the principal transaction documents;
- Working alongside the shareholders’ tax and financial advisers; and
- Assisting with the implementation of the post-completion ownership and management framework.
The Outcome
The transaction successfully transitioned a controlling interest in the business to employee ownership, allowing the shareholders to realise value from the business whilst maintaining continuity of leadership and supporting the company’s long-term growth strategy.
The new ownership structure aligns the interests of employees with the future success of the business and provides a platform for continued growth, investment and succession planning, while preserving the values and culture that have contributed to the company’s success.
