Employee Owned Business

About Employee Ownership

Employee ownership, sometimes called co-ownership, is a proven, successful business model and there are over 1,300 businesses in the UK that are owned and managed in this way. It works equally well for young, start-up businesses as well as for more established organisations.

So why might you consider employee ownership?

  • As the owner/director, you may be considering retiring and undertaking an employee buyout could solve your succession challenge.

  • You may want the business to stay independent and secure your legacy.

  • You may have a long serving and loyal workforce and this gives them the opportunity to take the business forward by which they can enjoy the fruits of their hard work in future.

  • If you are just setting up a business or are early in your growth stage, this is a great way to ensure that fairness is built into your structure and operational practice.

  • Such businesses typically demonstrate a number of operational benefits too such as improved productivity and profitability, reduced staff sickness, turnover and absenteeism as well as being more entrepreneurial and innovative.

An employee owned business (‘EOB’) is usually owned by the people who work for it, and usually takes one of three forms:

Direct OwnershipIndirect OwnershipHybrid Ownership