Case Study: Could an EMI be your exit strategy solution?
Company Background
Nick Smith, Chair and owner of Eleven, a recruitment company specialising in the energy sector, faced the challenge of creating an exit strategy that engaged his team in ownership and ensured the smooth running of his business. Founded 27 years ago, Eleven operates mainly in the UK and Europe, providing permanent and contract recruitment in the energy, climate technology, and renewable energy sectors.
Challenge
Nick Smith needed an exit strategy that would engage his team in ownership and ensure the smooth running of Eleven. This required a solution that was both flexible and adaptable to various internal and external capital events, while also being cost-effective and straightforward.
Solution
Over the past twelve years, Butcher & Barlow assisted Nick in setting up and updating an Employee Management Incentive (EMI) scheme. This scheme aimed to engage the team in part ownership of the business, offering a flexible model that could adapt to various internal and external capital events. Butcher & Barlow’s extensive knowledge and experience with EMI schemes proved invaluable as the firm guided Nick through three major iterations, ensuring the scheme aligned with Eleven’s evolving needs and goals.
How Butcher & Barlow Assisted
The initial setup of the EMI scheme, facilitated by Butcher & Barlow, involved crafting option agreements and registering the scheme with HMRC. Unlike other providers who often overcomplicate the process and charge exorbitant fees, Butcher & Barlow offered a cost-effective approach by collaborating with Eleven’s accountants. This streamlined method included necessary evaluations and annual updates, saving Eleven significant expenses while maintaining compliance.
Nick praised the efficiency and simplicity provided by Jonathan Aldersley from Butcher & Barlow: “His ability to simplify complex legal matters and provide straightforward, timely advice has been invaluable.” This allowed Nick to focus on running his business without the distraction of prolonged legal processes.
Throughout their long-standing relationship, Butcher & Barlow consistently delivered exceptional service, helping Eleven navigate various business achievements and changes. The Firm’s expertise in adjusting the EMI scheme to reflect different business objectives ensured that it remained relevant and effective. Whether facilitating the owner’s share buyback or preparing for a potential sale to an external party, Butcher & Barlow’s guidance was instrumental in maintaining the scheme’s flexibility and alignment with Eleven’s goals.
One notable aspect of Jonathan’s service was his role in communicating the intricacies of the EMI scheme to Eleven’s staff. Nick added: “Jonathan conducted staff briefing sessions to clarify what the scheme entailed. His ability to convey complex legal concepts in an accessible manner ensured that the team fully grasped the benefits and implications of their options.”
Nick’s positive experience with Butcher & Barlow extended beyond the EMI scheme. Over the past 12 years, the Firm has assisted Eleven with various legal requirements, consistently providing reliable, prompt, and practical advice. This trusted relationship was in stark contrast to Eleven’s experience with various accountants, whom they had changed multiple times over the years.
Conclusion
Nick Smith’s experience with Butcher & Barlow highlights the Firm’s expertise in facilitating complex business transitions and its commitment to providing exceptional, personalised service. By implementing and continuously adapting an EMI scheme, Butcher & Barlow helped Eleven achieve its goals while ensuring the business’s stability and success.
For any business considering a similar transition or requiring expert legal assistance, Butcher & Barlow’s Corporate and Commercial Team offers the knowledge, experience, and dedication to support your needs.
