Supporting Business Succession through Employee Ownership Trusts

Forrester Boyd understands that succession planning is a critical milestone for business owners. Ensuring continuity, preserving company culture, and securing financial stability are all essential considerations. One increasingly popular route to achieving these goals is transitioning to an Employee Ownership Trust (EOT). 

Recently, Forrester Boyd had the privilege of advising East Yorkshire’s Williamsons Solicitors on their transition to employee ownership. By shifting from a limited company structure to an EOT, they have ensured a stable and prosperous future for their 120-strong firm while maintaining the values that have defined them since 1890.

Employee Ownership Trusts are gaining traction across the UK as an effective succession solution, with over 1,600 companies making the transition, including approximately 30 law firms. The model offers numerous advantages, such as enhanced employee engagement and retention, as employees feel a greater sense of belonging and responsibility, fostering loyalty and motivation. It also ensures business continuity and stability by keeping the company independent and protecting it from external takeovers or management buyouts that may shift strategic priorities. Additionally, EOTs offer potential tax efficiencies, including the possibility of tax-free bonuses for employees, and preserve company culture by ensuring that the business continues operating with the same ethos and values established by its founders.

For Williamsons Solicitors, the move to an EOT was a carefully planned succession strategy. Solicitors Sarah Clubley and Jane Cousins, the previous owners, transferred 100% of their shares into the trust, ensuring that all employees now have a stake in the firm’s success.

Forrester Boyd’s dedicated team worked alongside legal advisors to facilitate the transition, ensuring compliance, financial structuring, and operational alignment with the firm’s long-term objectives. This involved conducting a thorough assessment of the firm’s financial readiness for an EOT, structuring the transaction to align with the firm’s strategic goals, and providing expert guidance on governance, tax implications, and employee engagement.

Following the transition, Sarah and Jane continue in their leadership roles, ensuring stability in day-to-day operations. The board of directors remains responsible for strategic decisions, while a newly established panel of trustees safeguards the firm’s direction, acting as guardians for all employees. This structure strikes a balance between employee empowerment and structured decision-making, allowing Williamsons Solicitors to maintain its commitment to excellence in legal services. Importantly, for both staff and clients, the shift to employee ownership means ‘business as usual’—but with the added benefit of shared financial success.

For business owners considering succession planning, EOTs present a compelling option. They provide a structured, tax-efficient way to transition ownership while maintaining company culture and securing long-term sustainability. Forrester Boyd has extensive experience guiding businesses through this process, ensuring a seamless and strategic transition.

Business owners exploring succession options and looking to understand whether an Employee Ownership Trust could work for their business can benefit from Forrester Boyd’s expertise. The team is available to provide support, ensuring the future of businesses remains secure for generations to come.

For more information about Forrester Boyd and the services it offers, please visit https://www.forrester-boyd.co.uk/.