An EOT serves as a mechanism through which a company can be owned by its employees, and this structure can be established by the company’s current owners. Instead of direct employee share ownership, EOTs involve the transfer of a controlling stake in the company to a trust that benefits all employees.
The Churchill Group, which encompasses specialized businesses operating in the facilities management sector, has announced its decision to adopt this approach. The goal is to uphold the group’s original entrepreneurial principles and core values while pursuing growth and development for the enduring benefit of employees, customers, and communities.
This strategic move is rooted in the advantages it offers to employees, fostering a shared incentive and responsible succession planning throughout the organization. James Bradley, the CEO of the group, emphasized that Churchill’s distinctive position in the facilities management market saying, “Churchill is proud of its difference in the FM market, achieving significant growth over 30 years. The EOT is a natural transition as it continues our unique culture and retains our values of doing right, seeking better and putting people first.
“Our colleagues are what makes Churchill’s specialist businesses so successful which is why our founders wanted it to be them who should share in the future success. When considering ways in which to take the company forward, we were impressed by the benefits becoming an employee-owned business would bring including furthering our sustainable purpose with better impacts for people and the environment.”
The growth of the UK EOT Sector has been notable, doubling in size according to The White Rose Centre for Employee Ownership Survey in 2022. Notably, the existing leadership team continues to manage the company on a daily basis, with the founders playing a guiding role to ensure the business’s long-term stability and sustainability.
Churchill Group’s diverse businesses, including Churchill Cleaning, Amulet, Portfolio, On Verve, Chequers, Churchill Environmental, and Radish, cater to a nationwide clientele. Their services encompass cleaning, security, front of house, water hygiene, social housing FM and groundworks, as well as catering, serving major sectors and prominent organizations in the UK.
Throughout the EOT transaction, Churchill Group received support and guidance from Grant Thornton UK LLP.