Corran Capital is an Edinburgh-based specialist private equity firm that invests in clean energy and sustainability-focused businesses.
We work with high-calibre entrepreneurs to support them scale and drive innovation in their companies. We are focused on investing in pioneering businesses from across the clean energy and sustainability spectrum, in areas including energy efficiency, renewable heat, recycling & resource efficiency, water & wastewater, transport/EV and the energy transition.
Have you Considered an Employee Ownership Trust?
Livingston James Director, Ali Shaw, discusses employee owned trusts and highlights some reasons why this type of sale might be a good option for your business.
In my line of work, I am privileged to meet many brilliant individuals and phenomenal organisations. As well as established enterprise clients, we love working with entrepreneurs that have built something special from scratch. I’ve had a few conversations in recent months with such business owners starting to look for an exit. Whether it’s post-covid burnout, a talent shortage slowing growth (we can help!), the cost of living crisis causing extra pressure, or actually just the perfect time to pass the business on; I’ve seen an increase in business owners looking to sell and it’s a decision not to be taken lightly.
There are plenty of ways to sell a business on such as an MBO, financial sale or a sale to a strategic buyer, and all have their pros and cons. Another option is transitioning to an Employee Owned Trust (EOT), which perhaps not everyone has considered.
Employee Owned Trusts
In January this year, Livingston James transitioned into Employee Ownership. As a purpose-driven people business, our founder Jamie Livingston was exploring the optimum business model to make us the most attractive place for the best people to work, which then led to the EOT. We’re fortunate that Jamie is very much staying with the business, allowing us to continue to take UK market share. So far, it has been very positive for everyone involved, so I thought I would share a bit more about our experience for other owners out there looking to enhance their business or simply looking for an exit.
So, what does it mean? In an EOT, the ownership of the business is transferred to a trust, which then holds the shares on behalf of the employees. This type of sale can be a good option for business owners who want to ensure that their legacy is preserved and that their employees are rewarded for their hard work.
Here are some of the reasons why an EOT has been a good option for us, as opposed to other types of sale:
There are around 165 companies with headquarters in Scotland that are employee-owned, with the number rising all the time. We’re pioneers in our sector and are still trying to figure out the downside! If you want to find out more about our experience transitioning to an EOT ownership model, please reach out to me at [email protected].
Can we help?
If you are looking for leadership advisory or recruitment support, please get in touch with our team of experts.
More Articles...
Livingston James is delighted to be retained by German Doner Kebab to appoint a CFO
GDK in the UK has seen significant growth over the last 4 years and has recently opened its 140th restaurant and now indirectly employs more than 3,500 team members. All GDK’s UK restaurants are owned and operated by entrepreneurial sub-franchisees. Having established itself s one of the most exciting and most loved QSR brands in the UK, GDK is now looking to take the next step in its growth and has recently announced plans to open another 25 new restaurants in the UK in 2024 and to have over 300 sites in 5 years.
Livingston James Retained by Corran Capital to Appoint a Principal / Investment Director
Corran Capital is an Edinburgh-based specialist private equity firm that invests in clean energy and sustainability-focused businesses.
We work with high-calibre entrepreneurs to support them scale and drive innovation in their companies. We are focused on investing in pioneering businesses from across the clean energy and sustainability spectrum, in areas including energy efficiency, renewable heat, recycling & resource efficiency, water & wastewater, transport/EV and the energy transition.
Telegraph Article on Impending Tax Changes
Our CEO, Jamie Livingston, spoke to The Telegraph and explained how the upcoming change will impact anyone earning over £28,850, meaning they will pay more in income tax than if they lived in England.