IT WAS a great start to 2023 for employee ownership as three Scottish businesses implemented an Employee Ownership Trust (EOT), safeguarding the long-term future of their companies, retaining jobs, skills and investment
SVM Glasgow, Stoneywood Care Services in Denny and Oliver Chapman Architects in Edinburgh all made the move to employee ownership after working with Co-operative Development Scotland (CDS), which offers advice and support via a 100% funded ownership succession review and employee ownership feasibility study.
SVM Glasgow is an engineering service design firm which specialises in the rail industry. It employs 14 people, all of whom have joined the newly-formed Employee Ownership Trust (EOT). Owner Craig Thomas said: “We first heard about employee ownership from Scottish Enterprise. We looked at various exit options, but employee ownership was the clear preference as it allowed us to maintain the legacy of the business while enabling senior staff members to further develop their skillsets, manage the business for themselves and ultimately reap the rewards of their efforts as shareholders.”
Social care provider Stoneywood Care Services is now 100% employee owned, with all 107 employees having a stake in the business. Co-owner Ian Howie said: “All exit strategies were explored for selling the business, but after attending several presentations with CDS it became clear to me and co-owner Mary Reid that employee ownership was the best option. Our employees were supportive of the idea and happy we weren’t going down the route of a trade sale, which they felt could cost Stoneywood its identity. They’re also happy to have a voice on the future of the company and feel included in major decisions, with business ownership staying in the local area.”
Oliver Chapman Architects has handed all 6 employees a stake in the business. Company Director Oliver Chapman said: “We were looking at how we can make the business more resilient and employee ownership just made sense. I was aware of other architectural and engineering practices making the same decision in recent years, and CDS case studies showed that it was a good option in terms of employee engagement and a stable transition of ownership.”
CDS is part of Scottish Enterprise and the arm of Scotland’s enterprise agencies* that supports company growth through collaborative and employee ownership business models. Scotland is the third largest growth region in the UK for employee-owned businesses and CDS is the only dedicated service aimed at supporting business growth through more employee ownership and co-operative business models.
Clare Alexander, Head of CDS, said: “The consistent issues that arise in our discussions with growing companies are their desires to retain their unique identity and purpose, secure a future in the local community and reward their loyal teams – at the same time as increasing their profits.
“Welcoming these three very different companies to the employee ownership fold at the beginning of 2023 really demonstrates that employee ownership can work for businesses of all shapes and sizes. It’s an increasingly popular choice among socially conscious firms who recognise the need to do things differently in the current challenging environment.”
Employee ownership gives employees a meaningful stake in their organisation together with a genuine say in how it’s run. Employee-owned businesses (EOBs) are also more resilient than non-employee-owned businesses during times of economic crisis, as well as being more profitable, more productive and having greater staff engagement.
The company transitions were project-managed by 4-Consulting and Co-ownership Solutions with legal services from Blackadders and financial inputs from Douglas Brotherston and Sharles.
