A transition to employee ownership, keeping the business in the hands of the team that helped build it.
The client
The Specialist Blind Co. (SBC) Ltd was incorporated in 2000 by Peter and Helen Matthews and specialises in made-to-measure blinds, specifically remote-control blinds, and home automation integration. Whilst the transaction has allowed Peter and Helen to realise their investment, Peter will continue as Managing Director of SBC, supported by longstanding employees Cheryl Ede and Sarah Edwards. This will provide continuity to both customers and employees.
What we did
K3 Deal Advisory advised on the successful completion of the transfer of SBC into an Employee Ownership Trust (EOT). This transfer presents SBC’s staff with the opportunity to benefit from the ongoing success of this established business, as well as its future growth.
The transaction was delivered by Managing Director Adrian Howells and Associate Director Richard Hill. The team was supported by colleagues from K3 Deal Advisory’s sister company, K3 Tax Advisory, Managing Director Holly Bedford and Associate Director Dominic Lay.
K3 Deal Advisory acted as the trusted financial advisor throughout the process. The team provided lead financial advice, company valuation and tax structuring, whilst leveraging its extensive experience in delivering M&A transactions to navigate complex issues and deliver a successful transaction.
The outcome
Rather than maximising value by selling to a third-party buyer, Peter and Helen were exceptionally keen to ensure the company remained in the hands of its employees, who have supported them in creating a high-quality product offering. Similarly, Peter and Helen declined to introduce third-party debt, which can be employed to accelerate payments to the exiting shareholders, thereby leaving SBC on stronger footing.
EOTs grant employees effective ownership of the company. Studies have shown such structures to motivate employees to drive further growth, as they hold a stake in the long-term success of the company and stand to benefit from any future dividends. This not only helps to improve employee retention but can also help to recruit the best new industry talent.
The transition to employee ownership is an exciting step in SBC’s development and I would like to convey my profound appreciation to our remarkable team and loyal customers who have supported us throughout the years. I look forward to working alongside the team as we continue to evolve and innovate to provide exceptional products to our valued customers. My thanks to the K3 Deal Advisory and K3 Tax Advisory team, who provided exceptional deal support, generated added value in this transaction and proved to be a solid sounding board when considering options in what can evidently be a complex transaction.
Peter Matthews, owner of SBC, said
