Cottons Corporate Finance is delighted to announce the sale of Nova Integrated Systems Limited (Nova) to Nova Employees Trustee Limited, an Employee Ownership Trust (EOT). The deal will not only help to secure the long-term future of the business and safeguard jobs; it will also reward employees for their significant contribution to the future growth of Nova.
Ian Saunders, director of Nova, commented: “Never in a million years would I have thought a sale to the employees of Nova was even possible! The sale to the employee trust has truly reinvigorated the workforce, particularly during these difficult times. It has helped to create a real sense of unity and empowerment. Needless to say, we all have lots of ideas about the next steps for Nova. As a team, we are genuinely excited about what the future for Nova will hold!”
Since they were first introduced in 2014, EOTs have become an increasingly popular alternative form of exit to a traditional trade sale or management buy-out. With limited disruption to the day to day operations, an EOT facilitates not only a smooth handover of the business, but also enables business owners to achieve a highly tax efficient exit strategy. Furthermore, EOTs have been shown to lead to improved business performance as a result of higher levels of employee engagement and retention.
Another boost to the workforce at Nova is that employees also have the possibility of benefitting from tax-free bonuses, up to the value of £3,600 per year.
The exiting shareholders were advised by Guy Pain, Director at Cottons Corporate Finance, who commented: “The formation of an EOT was a natural next step for Nova, as not only does it secure the succession plan for the company, but it also helps preserve the company’s culture and strong core values, carefully built up by the founding shareholders.”
“There can also be practical benefits for the workforce at Nova, from aligning the interests of the company and its employees, this can lead to greater commitment, a drive for innovation and overall improved business performance.”
With regards to the future, Ian Saunders further commented: “On a personal level, taking on the role of director has been a steep learning curve for me. With continued support from Cottons, I am confident that we have the right partner to help guide us on the journey ahead.”