The Courier & Advertiser (Fife Edition)
Firms urged to consider employee ownership
SUCCESSION: Dundee firm’s praise for model ahead of masterclass event in city
The finance director of a Dundee shopfitting firm has urged other companies to consider moving to an employee ownership model.
Bentleys director Bob Anderson said his own firm’s experience of making the switch had been “relatively painless” and had safeguarded the long-term future of the company in the city.
Bentleys moved to employee ownership in December after a period in which the senior management team had been mulling their individual plans for the future.
Mr Anderson said his ambition was to spend more time with family and on the golf course but he wanted to ensure the company’s future was secure in the first instance.
“It was a dilemma. How could we ensure Bentleys remained in Dundee as a flourishing business in a way that will allow each of the shareholders to exit the company in line with their personal aspirations?” Mr Anderson said.
“We attended a local event on the topic of business succession and that was the first we had heard of employee ownership trusts and this seemed to tick all our boxes.
“There would be continuity for our employees as well as our customers and our network of local suppliers and subcontractors.
“We would get a fair price for our business and paid in a way that suited us, and we could leave the business at times that suited us.”
Mr Anderson and his colleagues, managing director Alan Walker and technical director Colin McVeigh, contacted Co-operative Development Scotland (CDS) for advice about switching to an employee-owned business model.
They were persuaded of its merits but only committed to making the change after seeing one of its subcontractors make a successful transition.
Mr Anderson said it had been the right decision for Bentleys.
“We completed the transaction just before Christmas,” he said.
“The employees received the news enthusiastically.
“The actual process was relatively painless. Our advisers guided us through and although it’s early days, I think we got the best outcome possible for all parties.
“The former shareholders are happy, the employees’ jobs are safe as long as the company continues to be successful and Bentleys stays in Dundee.”
The company was advised on the legal requirements of the move to employee ownership by MacRoberts LLP and on the financial aspects by accountancy firm Henderson Loggie.
Both firms will be present at a CDS succession planning masterclass at Discovery Point on Wednesday.
The workshop will look at the range of options open to firms facing a succession phase, including employee ownership.
CDS estimates approximately 16,000 employers in Scotland are looking to transfer ownership in the next five years.
Director Sarah Deas said: “Business owners who are considering an exit from their company and are interested in employee ownership should attend this event to hear expert advice.”