Yavan Brar (Partner) and Sophie Protheroe (Solicitor) of Herrington Carmichael’s corporate team advised the founders of the Hawkins Group of Companies, a construction group specialising in roofing, steel, and projects, on the sale of the majority interest in the group to an employee ownership trust (EOT).
Hawkins Group is a market leader with a national presence in the competitive world of construction.
The group provides a variety of construction project management services to a wide range of clients, and has achieved substantial growth in recent years due to the excellent service levels and exceptional efforts of the team. Services provided by the group include (amongst other things): asbestos removal, drainage, internal fit out works, and landscaping.
Yavan and his team provided clear guidance on the transaction, and at each stage were able to navigate through the complexities to ensure that all stakeholders understood their obligations and responsibilities.
The sale to the EOT will allow the company’s employees a greater level of involvement in the running of the business, whilst allowing the founders to take a step back from current operations. In addition, the sale will ensure protection of employees’ interests and the culture of the group that has been developed over a number of years.
As a result of the transaction, the company’s employees will directly benefit from the success of the business, which will assist in driving positive behaviours in relation to the achievement of long-term, sustainable growth.
Despite receiving attractive offers from a number of 3rd party buyers, the founders chose to instead facilitate a sale to an EOT, and therefore pass on the success of the business to its employees, motivating the workforce without requiring the employees to personally fund the purchase price.
The founders view that the strength of the leadership team is a key asset of the group, and are therefore delighted to have transferred ownership in this way. The team are excited to see what the future holds for the group under its new structure.
“The support and guidance we received from Yavan and Sophie made the journey of sale to an EOT straightforward and effortless. From the outset they took the time to understand our needs and goals, explaining the process and answering all the questions we had – nothing was too much trouble. Their understanding of the complex aspects of an EOT transition helped us to make the right decisions for our company to continue moving forward in a positive and exciting direction.
We would highly recommend the team at Herrington Carmichael to any business considering such a transition. Their professionalism, expertise and care for their clients throughout the whole process was invaluable.”
– Mike Hawkins, founder of Hawkins Group of Companies
“We are grateful to Yavan, Sophie and the team for their work on transitioning our company to an EOT. They navigated the intricate process of the transition with care and precision, giving all those involved clear understanding and peace of mind throughout the process.
Their proactive approach and attention to detail were evident throughout and we wouldn’t hesitate to recommend the team to anyone considering an EOT transition.“
– Ian Crofts, trustee of Hawkins Employee Ownership Trust
