The rise of Employee Ownership Trusts (EOTs) across Yorkshire and the East Midlands reflects a growing recognition of the benefits that employee ownership can bring to businesses, employees, and the regional economy. As this ownership model continues to gain traction, the EOT community is emerging as a vital component of the business landscape in these areas.

Sarah Harrison, Partner at Clarion Solicitors, is one of Yorkshire’s leading dealmakers for owner-managed businesses. Over the past couple of years, Sarah has seen a significant increase in the number of businesses deciding to implement EOTs, and this trend shows no signs of slowing down.

“EOTs have been around for a long time but their popularity has surged in recent years, particularly since post-Covid economic challenges have made other more traditional succession routes, such as trade or private equity sales, more difficult for some businesses. EOTs were pulled out of the shadows as a viable alternative and, as awareness of them has grown, more business owners now appreciate the many benefits they can bring, safeguarding both the business legacy and employee interests.”

At Pratap Partnership, we are passionate advocates of employee ownership! Since making the exciting transition to the EOT model in November 2023, we’ve had the pleasure of connecting with many businesses that have already embraced employee ownership or are planning to make the shift. It has been especially rewarding to support these organisations by helping them recruit exceptional talent.

We were inspired by the Employee Ownership Association Conference last year. There is already a strong network of EOTs, and there is every reason to suspect that the trend will increase. Over the past few weeks, we have spoken to many of the legal and financial dealmakers.

Our network has taught us so much about EOTs and best practices, and I plan to share some of the news from across the region, where EOTs are an increased focus for many.

Hudgell Solicitors report strong growth in the year of its transition to employee ownership  

Gripple, a Sheffield based employee owned business, has reported a year of "continued investment and success" despite challenging conditions.  

Laxtons Specialist Yarns in Leeds transfers to EOT ownership after 117 years.  

South Yorkshire’s Abbeydale Brewery becomes employee-owned

I am one of the three EOT Directors for Pratap Partnership. This means several things to me:

• I attend our quarterly EOT Board Meeting to review the board actions and accounts and represent the business's employees.
• I work with Claire Screeton, Finance Director, to communicate relevant updates to the team, generate upward communication, and ensure that we are always seeking ways to improve our business.
• And the best bit? I finally get to tell Nik what to do after 10 years of working for him! This is probably my favourite bit!

Nik and I recently had the pleasure of meeting Ed Stubbs, Emma Hibbert and Natalie Sulej at Gripple, Sheffield. Gripple have been under 100% employee ownership since 1994, with this commitment being formalised through the establishment of GLIDE (Growth Led Innovation Driven Employee) in 2011. They have one of the strongest people strategies in the area and are B Corp Certified.

The GLIDE businesses are employee-owned via a 'direct' model of ownership, meaning every single person is required to invest in shares and own their company. This means everyone has a vested interest to take responsibility and to contribute; to drive innovation across all areas, to share ideas, to champion the culture, and to grow and sustain the business for the long-term benefit of all.  

Employee ownership at Gripple means having a stake in the business, and a meaningful say in how its run. It’s a fantastic opportunity for employees to shape the business they want, and to be empowered by the challenge and the responsibility. This has a direct impact on employee engagement, job satisfaction and therefore retention, with employee turnover at Gripple currently sitting at just 9.5%.