Sheffield-based International Organisation Development (IOD Parc) has become employee owned after establishing an employee ownership trust (EOT).
IOD Parc, a management and international development consultancy with 38 members of staff based in the UK, Nepal, Australia and France, transferred ownership from two majority shareholders and a number of minority shareholders to all eligible employees. It worked with Hentons Corporate Finance, which provided corporate finance and legal advice, and law firm Leonard Curtis Legal throughout the transfer.
According to the organisation, the transaction involved the negotiation of share purchase documents together with tailored EOT documentation to consider specific concerns of the employee group. It also included a agreement to govern the relationship between the EOT and continuing shareholders.
Mark Keen, principal consultant, co-founder and one of the former majority shareholders, continues to be chair of the company board and also joins the board of the EOT as a trustee director. Co-founder Julian Gayfer will remain managing director and principal consultant.
Keen commented that employees have been central to the business’ mission since it began in 1998 and its continuing sustainability would not have been possible without their hard work and contribution, which senior leadership want to recognise as they look towards the future.
He explained that the team wants to continue to bring in more expertise to strengthen practice and provide field-leading services, feeling confident that a move to an EOT model is the right step to achieve this.
“We’ve now built a new management team to drive future success, and employees are now set to benefit from it. Leonard Curtis Legal came highly recommended as specialists in EOTs, supported by excellent corporate law credentials when it comes to mergers and acquisitions. They certainly fulfilled our expectations and we were most impressed with their practical approach and depth of knowledge,” he said.