Team Consulting takes final step towards broader employee ownership
On 16th December 2016, Team transferred control of the company to a new Employee Ownership Trust (EOT). The business has always been owned by those who work in it, meaning the establishment of an EOT is a natural extension to the already existing employee ownership of Team.
Following the staff buy-out of 2014, the transfer to an EOT broadens ownership to all staff and ensures the employee ownership model is sustainable in the long-term. The employee ownership trust model will encourage staff engagement, reward teamwork and the building of value together. In this new model, all employees become beneficiaries of the trust and stakeholders in the business. Importantly this enables Team to have a sustainable employee ownership model, benefiting both staff and clients alike.
Dan Flicos, CEO at Team Consulting, commented: “Team is 100% employee owned and will now remain so in perpetuity. This is a great fit with Team’s culture and values. Significantly, it enables future generations of talented staff to take the company forwards without the pressure of repeated buy-outs and refinancing. We can now build and share value together.”
Left to right: Dan Flicos (CEO), Colin Mathews (COO), Claire Young (Human Factors Consultant) and Alec Harris (Head of Contracts)
Following an internal consultation process involving all shareholders and staff, Team decided that the EOT model offered significant advantages in terms of sustainability and fairness, compared to the direct share ownership model. The transaction was advised by Graeme Nuttall OBE, partner at Fieldfisher, and Mark Rutherford of Gateleys.
Graeme Nuttall OBE, said: “Team Consulting is already part of the UK’s successful £30bn employee owned sector. Its move to permanent ownership by an employee-ownership trust (EOT) secures the long-term independence of the group. Employee ownership has already helped Team expand into a leading medical device consultancy. 80% of staff were shareholders after a 2014 buy-out and a share incentive plan has increased the number of employee shareholders. The recent introduction of the EOT by the UK Government prompted the move to a mix of EOT and direct employee ownership, so that through the EOT all staff now have a stake in the business and a say in how it is run.”
Deb Oxley, Chief Executive of the Employee Ownership Association, said: “We’re delighted to hear that Team Consulting has broadened its commitment to employee ownership by moving into an EOT with 100% of its staff able to benefit. At a time when we are hearing the Prime Minister’s call for better governance with more employee representation and businesses that benefit all, it’s heartening to hear how much of this is being demonstrated in the employee ownership sector by companies like Team, where they feel the model not only supports the company’s values but also the future sustainability of its business and one of its key assets – its people.”
The success of setting up the EOT marks an end to a year in which Team has celebrated its 30th year in business, grown to over 90 permanent staff and has built on its world-leading reputation for medical device design and development.
Please note: this change in ownership does not affect any interaction between existing clients, suppliers or businesses involved or in contract with Team Consulting.