Following feedback taken from a recent SPVS Business Club meeting looking at Succession Planning, SPVS are pleased to offer this session exploring Employee Ownership Trusts.
Synopsis:
This session will offer an introduction to Employee Ownership Trusts (EOTs), a transformative business model that transfers ownership of a company to its employees. The session is designed for business owners, considering succession planning, who may be interested in exploring alternative ownership structures.
EOTs hold the majority of shares for employees’ benefit, fostering shared ownership and responsibility. EOTs incentivise employees, foster a sense of ownership and loyalty, provide tax benefits. However, they also present challenges such as the complexity and cost of setup, aligning employee interests, and meeting stakeholder expectations. While EOTs can be a viable option for some businesses, they require careful consideration and management, as they are not a one-size-fits-all solution. Selling a business into an EOT can be positive, but not easy, requiring thorough planning for future governance and succession.
This session will draw on the expertise of Jeff Lermer from JLA Accountants, Victoria Dorman from HCRLaw both of whom have worked with many companies helping them successfully transition to employee ownership. Matt Flann from Pennards Vets will add valuable insight from the perspective of a business that has transitioned to EOT set up.
Key learning outcomes:
- Understanding of the fundamental principles and structure of Employee Ownership Trusts (EOTs).
- Exploring the benefits of transitioning to an EOT, including tax incentives, improved employee morale, and business resilience.
- Examining the legal, financial, and operational considerations involved in establishing an EOT.
- Come away with practical guidance on the steps and timelines for implementing an EOT in your organization.
Our fantastic speakers
Matt graduated from the RVC in 1999 and took a position in Pennard Vets in Kent where he has remained. Over his 25 years’ experience he honed his skills in small animal first opinion practice with a special interest in Cardiology. Whilst enjoying veterinary medicine, he developed a keen interest in the running of the practice from the dual perspectives of team dynamics and the finances behind the business.
He went onto run one of the group’s larger sites to put these skills to the test and then became Managing Director of the group in 2012. Since then, he and his colleagues have taken the group from 4 to 8 locations and currently employing 170 people, working in effective teams delivering high class first opinion care in an independent setting. In 2021 he helped transition the ownership of the practice into an Employee Owned Trust. In 2022 the practice also gained BCorp status being the 4th Veterinary Practice in the world to do so. Matt led the project to relocate the main location to a new 11,000sqft hospital which opened in the Spring of 2024.
He has served on SPVS council and served on the BSAVA programme committee.
His journey has just begun…
With over thirty years of experience in the accounting profession, Jeff’s flair for generating innovative tax planning and his astute advice have assisted numerous clients and their businesses. Jeff’s creative mind and lateral approach to improving tax efficiency has ensured the firm remains cutting edge.
Outside the office, Jeff continues to utilise his accountancy skills, volunteering his services to organisations close to his heart.
Victoria is a Senior Associate within HCR’s veterinary team. With a specialism in corporate law, Victoria helps veterinary clients navigate their way through the various stages of a practice’s life cycle from start-ups, through the growth stage and eventual exit and succession planning. Working with a practice’s accountants and financial advisers, the team at HCR have vast experience of putting in place structures to help clients achieve their short, medium, and long—term goals.
HCR is a national, top 60 full-service law firm that has years of experience providing veterinary clients with a full range of legal advice including corporate, real estate, employment as well as private client matters.
