Geldards help CORE digital agency transition to Employee Ownership

Geldards one of the leading advisors on Employee Ownership Trusts has advised Cardiff-based digital agency CORE on its successful transition to an Employee Ownership Trust (EOT) .

Established 21 years ago by Managing Director Ceri Richmond, the creative web and brand agency celebrated its milestone birthday by opening the keys to door of Employee Ownership. Having grown from humble beginnings, starting life as a one person enterprise, the company has grown organically over the years and now boasts an established team of creative and technical specialists. Offering a range of services for branding and web, CORE boasts an impressive client list which includes MotoNovo Finance, Automotive World, Gray’s Inn and Admiral Law.

Considering the future of the business and a deciding on a pathway to gradually step away from the helm, Ceri decided that the transition to an Employee Ownership Trust would be the right model for the company.  A popular alternative to a sale on the open market, an Employee Ownership Trust hands ownership of the business to employees and trustees are appointed to ‘look after’ shares in the business on behalf of the employees.  Ceri will continue as Managing Director at Core under the new management structure which will enable him to gradually reduce his time at work.

One of the motivating factors for the transition to employee ownership for CORE was the desire to continue to run the business in a collaborative way and to look after its loyal workforce.  Many businesses are realising the benefits of this model as an effective means of succession planning, helping to retain the integrity, culture and knowledge-base of the business and ensuring business continuity by retaining valued staff.  The Welsh Government is committed to increasing the number of employee-owned businesses in Wales, and CORE is the first digital agency in Wales to adopt this model and was supported by the Employee Ownership team at Social Business Wales, delivered by Cwmpas.

Geldards is a leading advisor on Employee Ownership Trusts and has guided many businesses through the transition to employee-ownership, helping ensure business continuity and security for the future. The team at Geldards advised CORE 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.

Ceri Richmond,  CORE Founder said:

“Geldards expert advice on transitioning to employee ownership was invaluable to the team at CORE and they guided us through the process very thoroughly.  Knowing they had helped so many other businesses in our position take the leap into becoming employee owned was extremely reassuring”.

Andrew Evans, Partner at Geldards Cardiff commented:

“CORE was a brilliant company to work with in transitioning to being employee owned. Ceri and the team bought in to the benefits of EO and it was great to assist in the next stage of the development of CORE.”

Paul Cantrill, specialist EO consultant for Cwmpas, said:

 “It’s wonderful to help Ceri and the team at CORE implement and build a solid succession plan based on their strong employee culture.

“It has also been great to see the enthusiasm for the transition from the rest of the CORE team. They are all completely invested in this model of ownership, and I know it is going to take the business from strength to strength.”