Strategy Consulting
RSM UK
Full Credential Description
Richer Sounds faced the challenge of transitioning to an employee ownership trust (EOT) to enhance employee engagement and secure the future of the company. The primary issue was to find a sustainable exit strategy for the controlling shareholders while ensuring that employees felt valued and motivated. The company sought a solution that would not only facilitate this transition but also provide tax benefits for both the shareholders and employees. To address these needs, RSM was engaged to implement the EOT structure. The tailored solution involved transferring the controlling interest of Richer Sounds to a trust that would benefit the employees. This arrangement allowed the original shareholders to receive tax relief on the sale of their shares, while employees could potentially receive tax-free bonuses of up to £3,600 annually. RSM provided comprehensive support throughout the process, including legal advice, share valuation, and governance structure recommendations, ensuring that all stakeholders were adequately informed and engaged. As a result of this transition, Richer Sounds successfully established itself as an employee-owned company, which not only preserved the company c
Measurable Results
Professional advisory services and strategic guidance delivered