Tue, 21 Mar 2023 | MBO/MBI
Langcliffe International, a leading buy-side mergers & acquisitions deal originator, has transitioned to an employee-owned business model. This change signifies a commitment to empowering its workforce and fostering a more inclusive and equitable corporate culture.
The company is based in Ilkley, West Yorkshire and was set up in 2012 by Mark Eardley (Managing Director) and Helen Postlethwaite (Commercial Director). The business employs 17 professionals and a further 5 consultants. It has grown rapidly in recent years across Europe capitalising on unrivalled relationships with vendor advisors, corporates and private equity firms. The company introduces acquisition opportunities in a value range between £3m and £100m.
The business attributes its continuing success to the trust it has developed with its vendor advisors, its unique model backed by bespoke operating systems and rapid growth in Europe from where it currently generates in excess of 50 per cent of its revenue. Further growth will come from developing in the US and Asia.
Mark Eardley, the Managing Director is transferring 73% of his shares to the Employee Ownership Trust (EOT). Under the move, all employees will benefit financially from the future success of the company and Mark Eardley and Helen Postlethwaite will stay in the business. The EOT Board will comprise Helen Postlethwaite, Chairman, Mark Eardley and Langcliffe’s four Managers, Poppy Briggs (Europe), Maryia Amrez (Private Equity), Joanna Hughes (Corporates) and Holly Cooper (Vendor Advisors).
Under this new structure, an Employee Stock Ownership Plan (ESOP) has been established, allowing employees to acquire shares of the company and effectively becoming co-owners. This model is expected to have a range of benefits for both the company and its workforce:
Improved employee engagement: As employee-owners, workers are more likely to feel a greater sense of responsibility and investment in the company's success. This often leads to increased motivation and productivity.
Attracting and retaining talent: Offering an ownership stake can make Langcliffe International a more attractive employer, helping it to recruit top talent and reduce turnover.
Alignment of interests: With employees as stakeholders, their interests are more closely aligned with those of the company, encouraging long-term strategic planning and decision-making.
Wealth creation for employees: As the company grows and prospers, employee-owners can benefit from increases in the value of their shares, creating financial security and opportunities for wealth accumulation.
Enhanced corporate reputation: Employee-owned companies often enjoy a positive public image, as they are perceived to prioritise their workforce's well-being and promote fair and equitable business practices.
The transition to an employee-owned model represents a significant milestone for Langcliffe International, and it will be interesting to observe how this change impacts the company's growth, culture, and long-term success.
Mark Eardley said:
"Selling the company to our employees through the creation of the EOT ensures the stability of the business for the long-term and supports our desire for further international growth. This move recognises the value that our fantastic team has delivered over the years, and it is a very exciting opportunity for each individual to take a pivotal role as the business progresses. Creating a great place to work is fundamental to our business principles, and we’re very excited about the next stage of the journey."
Read more about Employee Ownership Trusts
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