Why is a recruitment agency like a veg box?
Sorry, no punchline. But in the last three weeks, we’ve seen two very different companies make the move to employee ownership, demonstrating that the “John Lewis” model can work in any sector.
In May, Kinetic plc, specialising in recruitment and payroll services, became employee owned by way of sale to an Employee Ownership Trust (EOT). The managing director who oversaw the sale to the EOT explained that he wanted to preserve the company’s independence and culture, without selling to a third party.
This week, Riverford Organics, organic farm and long time provider of organic veg boxes, also saw the transfer of ownership, with the company becoming 74% employee owned. Again, for the founder, selling to a third party was not an option – and the new structure is all about “getting the best out of people while giving the most back”.
They can tell their stories better than me. Look here for the Kinetic story; here for the Riverford one.
The traditional third party sale wasn’t for either of these companies but the employee ownership route fitted them perfectly – for very different reasons. If you’re looking for an exit from your business, it’s well worth considering.
We offer a free consultation on setting up employee ownership arrangements in your companies, including setting up EOTs. Call us on 0208 949 552 to find out more, or email us on enquiries@rm2.co.uk.
Alternatively, why not listen to our upcoming webinar next Wednesday 13th June at 11.00am. Click here to sign up.