If you’re considering employee ownership, you’re in good company. Aardman Animations, Riverford Organics, Wildlife World and Lush are among the successful businesses to have embraced this increasingly popular model of ownership.
Last year, the employee-owned sector grew by a record 27%. It’s a trend driven by the fact that giving staff a stake in the company can enable founders or owners to:
Employee-owned businesses achieve higher productivity, are more resilient to economic downturns and have more engaged workforces. According to the latest Employee Ownership Top 50 report, they typically enjoy:
And as accountants, it would be remiss of us not to point out the tax advantages of employee ownership for both exiting owners and employees, not least the chance for a completely tax free sale.
Different types of employee ownership
There are three main forms of employee ownership:
Each has its advantages and potential disadvantages, depending on what you want to achieve. We can help explore each of these routes to determine which would suit you best.
Could employee ownership
be right for me?
Employee ownership could be a good solution if you want to:
We know there’s a lot to think about and it’s a big step to take. We can make it easier by talking through all the options so you can decide if employee ownership is the right step for you. To find out more and discuss if it’s right for you, please contact Martin Brown.