Brabners helps recruitment agency become employee owned

A London based recruitment agency which specialises in technology-focused roles has been purchased by its 23 staff through the establishment of an Employee Ownership Trust.

Total Recruitment Specialists, trading as TRG, was established in 2005 and has worked for a wide range of clients including a number of large financial services organisations such as AIG, Lloyds Bank and Tandem Bank.

It has been sold by founder and majority shareholder Phill Bateman, as well as a number of minority employee shareholders, to the trust, which now owns 100 per cent of the company.

The purchase has been financed through a combination of company reserves and deferred consideration and the trust will be governed by a trustee board which will include Phill, independent director Paul Sharpe and also a staff representative.

Phill will also continue to support the company’s day-to-day operations on a temporary basis.

Phill Bateman, founder and director, TRG, said: “Completing our transition to being employee owned is a huge moment in our existence. While nothing changes operationally for our clients and partners, the EOT model enables us to impact the lives of everyone working for the company for the better, including future new recruits, as they will benefit from our profits.

“While I will remain in the company for the time being, our next goal is to develop a succession plan and I will then eventually leave. I’m excited to help build the company’s future with an ownership structure that safeguards it for the coming generations.”

The deal was supported by the corporate team at the Lancashire office of independent law firm Brabners, which advised on a number of areas of the project for TRG including the establishment of the Employee Ownership Trust, as well as matters related to enterprise management scheme (EMI) share options of several staff.

Brabners’ team was led by Mairead Platt, senior associate who worked alongside Danielle Phillips, solicitor. Accountancy and tax advice was provided by Dean Curtis and Patrick Wilson from Beever and Struthers.

Mairead Platt, senior associate, Brabners said: “Employee ownership is a particularly popular route for recruitment businesses because it is a sector where employees are a vital asset of the business.

“The EOT structure allows founders and owners to exit a business in a way which benefits them and the business, while providing certainty about its future governance in the hands of those who often know a company best – it’s employees.

“It has been a pleasure to work with Phill and the team to secure a deal which maximises the benefits for all parties involved.”