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Saying YES to employee ownership

25 October 2022

Saying YES to employee ownership

Award-winning independent hirer Your Equipment Solutions (YES) of Falkirk has new owners… its employees. 

The business has secured the future of 29 jobs by placing the majority of the shares into an Employee Ownership Trust (EOT).

The firm is currently in its tenth year of operation and is on track to achieve another record year in 2022, recently opening a second branch in Dundee – as reported earlier on the blog. 

David Johnstone, founder and MD of the business, was a senior director at HSS Hire before establishing YES in 2012, which has grown rapidly ever since.

Looking to secure the future of the firm while fulfilling his goal of retiring at age 55, David made the decision to hand over the reins to his staff. 

Fellow directors Lisa (David’s wife), Alex (his brother) and Eddie Nicholson are similar ages to David, 52, and share his thoughts on the future of the business.

David said: “Your Equipment Solutions has reached an incredible milestone. As founder, I’m at a point where I’ve passed down my vision and purpose to the staff over the years and they have embodied it in everything they do.”

Other YES team members include David's son Ryan, daughter Danielle and even his grandson Jamie is well-known by staff and customers. 

“As clichéd as it sounds, we are one big family at YES and when looking into my succession plan, employee ownership was the perfect option. I’ve always had the view that if the company does well, the staff should do well, too – and this is just one of the ways I can repay their hard work.

“I’m confident that the more than capable team are going to continue the business’s constant commitment to quality products and services, as well as its strong values in charity and local community, which is something that wouldn’t have been guaranteed should I have sold the firm,” he added. 

David also told me: “I could have considered a trade sale but that can be challenging and it can be difficult to get a true value for the business. This arrangement protects the future for everyone – it’s in their hands now. They own 60 per cent of the business. 

“In the longer term, rather than possibly being bought out by another business that would consolidate offices, transport and employees, it now means that the future for the team remains in Falkirk.” 

To mark the company’s move to employee ownership, and to reward the YES team for their loyal service, the company is paying a special bonus of £1,000 to each employee. 

The hire business is community partners with Falkirk FC and Stenhousemuir FC and also sponsors Falkirk Rugby Club and various golf courses. YES also carries out numerous charitable and community-driven initiatives in the surrounding area.

David added: “This is extremely important to me, and the EOT will allow us to continue to develop our support and understanding of what our local community needs and where we can help.”

David will slowly start to reduce his working hours over the next three years, leaving the day-to-day running of the business in the capable hands of the dedicated team.

The company’s accountants, Motherwell-based Turner Accountancy, introduced the idea of a sale to an EOT to David. Director Damian Turner said: “David has built something quite unusual and very special at Your Equipment Solutions. The EOT is a good fit and will protect that unique culture and provide continuity for both employees and customers.”

David called upon employee ownership expert Ownership Associates to ensure the transition to the increasingly popular business model was seamless. The specialist firm has now helped more than 80 businesses transition to the EO business model.

Carole Leslie, director at Ownership Associates said: “There was a real sense of family and community at YES and it was an absolute pleasure to assist David in handing over control to his loyal staff. The move has allowed him to smoothly exit the business while ensuring its longevity, values and job security aren’t impacted.”

Douglas Roberts, of Lindsays, who provided legal advice for the transaction, said: “We were delighted to offer our expertise in easing the transition for YES into employee ownership. It was very rewarding to find a people-led solution for an excellent people-first firm.”

The Employee Ownership Trust was introduced in the Finance Act 2014 to encourage companies to consider a sale to employees as a feasible succession solution.

Ownership Associates works exclusively within the employee-owned sector, supporting companies on their move to employee ownership and working with established employee-owned businesses enabling them to maximise the ownership advantage.

 


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