Geldards advise Orchard Media on transition to Employee Ownership Trust
Geldards one of the leading advisors on Employee Ownership Trusts has advised Orchard Media and Events Group on the successful transition to an Employee Ownership Trust (EOT).
Based in Cardiff, Orchard is an award-winning communications agency who has been providing creative communication services to high profile clients such as Admiral Group, Netflix, BBC, Aston Martin, Quatar Airlines for the past fourteen years.
Geldards has been working closely with Orchard over the past six months advising them on transferring ownership from the original founders to the 64 strong team of staff to be managed by an employee-owned trust, in a move to protect the future independence of the £15m turnover company.
EOTs are an increasingly popular vehicle for succession planning, helping to retain company legacy, safeguard jobs and give employees a stake in the future growth of the business. The Welsh Government has a target to double the number of employee owned businesses by 2026 and supports the Employee Ownership Wales service at the development agency Cwmpas with a commitment to ensure Wales-based companies remain in Welsh hands.
Geldards is a leading authority on Employee Ownership Trusts having guided many businesses through the transition to employee-ownership, helping to maintain business continuity and surety for the future. The team at Geldards advised Orchard Media on the transition to an Employee Ownership Trust, on the formation of an EOT, the purchase by the EOT of the entire share capital and the process of engaging with the employees on the transaction.
Tax Partner Andrew Evans led the deal advising on all legal aspects of the transaction supported by Corporate Partner Alex Butler and solicitor Mina Dimitrova.
Commenting on the transaction, Andrew Evans, Partner at Geldards said:
“Geldards is delighted to be trusted with advising on the transition of Orchard to employee ownership. The shareholders, management team and employees have been very receptive to the idea of employee ownership and a desire to adopt “best practice” in terms of employee engagement to make the transition a success and the basis for future growth in the business.”
Orchard co-founder and outgoing Operations Director Al Wilson said:
“When we looked at the options for succession planning, the EOT model stood out for us as a way to repay the hard work and commitment of the team here, and give them this huge opportunity to take Orchard into an exciting future. The ethos behind EOTs aligns well with the values we’ve nurtured in the company, and we know that the leadership and wider team are the people best placed to benefit from its future success.
“We‘re grateful to Andrew Evans at Geldards and Paul Cantrill, a Corporate Advisor with Cwmpas for their specialist EOT knowledge and invaluable support in getting us to this point.”
Jim Carpenter Co-Chief Executive said:
“The Orchard founders Al Wilson, Matt Wordley and Pablo Janczur built great foundations for the company, and we’ve achieved so much in a short time. Now the EOT model will repay the hard work and commitment of the team here, and give us all the opportunity to drive our strategic direction. The ethos behind EOTs aligns well with the values we’ve nurtured in the company, and this team are the people best placed to benefit from its future success.”