Hawsons Corporate Finance had the pleasure of supporting Custom Made Kitchens Limited (“CMK”), a well-established manufacturer of bespoke kitchens based in Doncaster, South Yorkshire, during its transition to an Employee Ownership Trust.
The exiting shareholder, Keith Hackshall, was looking for a tax-efficient succession strategy that would provide a clear direction and certainty for the business, its employees and customers. Through discussions with the Hawsons Corporate Finance Team, it was evident that a transition to Employee Ownership would provide all of the above as well as rewarding their staff for their hard work and dedication.
The Hawsons Corporate Finance Team, led by Peter Wilmer and Jack Ware, acted as lead advisors to CMK in its transition to an Employee Ownership Trust. Legal services were provided by CMP Legal and property aspects by Mason Thomas Law.
An already driven and ambitious team, the employees of the business are now even more motivated and empowered to grow, and shape the business to benefit from their well-earned share of future profits.
Hawsons Corporate Finance’s role during the process was to project manage the entire process, this included the following:
Suitability of employee ownership
We engaged in open discussions with the shareholders detailing various succession routes, including the suitability of an Employee Ownership Trust.
We prepared an expert valuation of the company determining fair market value.
We assisted in structuring the deal, including the use of financial forecasts to determine a suitable repayment period for any deferred consideration.
We obtained advance tax clearance from HMRC to gain comfort on specific tax areas of the transaction.
Working in tandem with the chosen lawyers to provide a seamless service, we assisted in reviewing the legal documentation, ensuring the tax position was not compromised.
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