The existing team at fds Director Services Limited have taken ownership of the business via an Employee Ownership Trust (“EOT”).
An Employee Ownership Trust allows you to sell your business to your employees without them having to personally invest any money into the business, making them indirect owners of the company.
Jo Haigh, Chairman and Founder of fds, has passed ownership of her business support and director training business to CEO Poonam Kaur and the existing team, as part of the company’s succession planning.
Jo passed on the opportunity to exit the business via a traditional trade sale, something which fds specialises in and has completed 400 transactions over 36 years of business, and instead favoured an Employee Ownership Trust (EOT) as she wanted the values and DNA to remain with the business post-exit. Jo also wanted to reward the team who have helped build the business and will be the company’s next generation.
All staff (subject to participation rules) own the business through the EOT. The EOT also has a trustee board that has final control over its operation.
Jo said: “Having started fds back in 1989, I am passionate about what happens to fds next, and I truly believe passing ownership of the company via an EOT to the team is the ideal way. The EOT allows me to still retain a small amount of shares, but the EOT is the main shareholder of the business, I will also still be remaining as CEO, but I fully support the team in the route we will be taking going forward.
Fortunately, fds experienced no downtime during COVID-19. We have expanded our services, now offering crowdfunding and EOT services to SME business owners, in addition to our existing services such as fundraising, trade sales, acquisitions, company valuations and director-level training. Although we have all been working remotely, the team has continued to work incredibly hard throughout this period.
I am confident that this is the best route for fds to continue to grow and deliver services to businesses across the country.”
Poonam Kaur, CEO at fds Director Services Limited, comments: “At fds, we specialise in helping companies with their succession planning, whether that’s via a trade sale, management buyout or an EOT. It is so incredibly generous that Jo has decided to pass the business to the team, and I am extremely proud to lead us into the next chapter so we can continue to build the company and take it forward for many years to come.
An EOT is a great incentive for the whole team, as now the business they are working incredibly hard in is now a business they own, something of which they may have never considered a possibility previously. The EOT also allows the business to reward members of the EOT with tax-free bonuses, so it’s a great way to incentivise the team and future members who join the business.”
fds provides a full employee ownership service offering, and the team is always happy to engage in a confidential discussion with anyone looking to understand the steps to transition to employee ownership.
If you are interested in understanding the employee ownership trust process further on your own terms, feel free to download our EOT digital download link here.