A Castletons’ client, Partnership Training Ltd, has recently changed their business to an Employee Ownership Trust (EOT). The business, which trains people working in the Adult Care and Children & Young People’s Services sector, was established in 2012 by two dedicated former Registered Care Managers, Sharon Saund and Christine Cook. Sharon and Christine set up the business to deliver training and apprenticeships which would have a powerful and worthwhile impact on the learner, ultimately benefitting the vulnerable person being supported and cared for. The business has grown to a team of 42.
“It’s strange – nothing has changed, but everything has changed.” This is how Sharon described how it felt to have become an Employee Owned company. We spoke to Sharon to understand why she and Christine had decided to change their business to the Employee Owned model, how they found the process and how they feel now their business has changed.
“We have built our business around our people and the care sector. Our people deliver training and apprenticeships which change the lives of those undertaking the training and in turn the lives of those being cared for by our students. I’m not sure you can have a more people-centric business.
From day one, Christine and I wanted our business to provide a space in which people are happy to work – a community where everyone knows each other’s family members; where team members’ partners, children and pets are welcome in our office. We are proud to have won a number of awards because of our approach to our people, including The Times & Sunday Times’ Best Places to Work, where we were particularly praised for our focus on supporting employees’ wellbeing.
Our approach to our people has fostered loyalty, dedication and hard work from our team members. As a result we have been speaking to Andrew from Castletons for a number of years about how we could reward our team members. But every way we could reward them, they and us were hammered by HMRC. For a number of years, Andrew had suggested that we look at an EOT, but the timing wasn’t quite right.”
Andrew explains: “An EOT is a way to structure a company’s ownership so that the Trust holds a majority stake for the benefit of all eligible employees. Employees do not directly own shares. The Trust acts on their behalf and can be an alternative for business owners seeking to exit, often providing tax advantages such as Capital Gains Tax relief on the sale to the Trust. The EOT ensures that employees have a say in the company’s direction through an employee council or representation on the board; and enables eligible employees to receive from the business, annual bonuses of up to £3,600 tax free each year as well as benefiting from any potential future sale of the business.”
Sharon explained: “We were starting to think about our succession. Like many sectors, the training sector has seen a lot of consolidation – large players buying up smaller businesses. We did not want to go down this route. We are so proud of our approach to our people, and did not want this to be diluted or even lost by selling out to another business. The Employee Owned model seemed perfect. It allowed our business to continue to operate with the same ethos and encouraged sustainable growth, where quality would remain at the heart of the business. It would also enable Christine and I to develop a management team who would enable us to slowly back away from the business – providing a planned exit.
My advice to business owners considering moving into Employee Ownership would be:
- Be honest with yourself – Ask if you’re truly ready to let go. An EOT is more than a legal process — it’s a mindset shift. You’ll need to develop and trust your management team so they can take the reins in time. Your willingness to nurture others and gradually step back is what will make the transition work.
- Know your value and your timing – Work with advisors like Castletons to understand your business’s true worth and the best timing for an EOT. Sometimes waiting a little longer can make a big difference. The right advisors will challenge your thinking, help you plan strategically, and make sure you understand the long-term impact of your decisions.
- Appoint the right solicitors. Choose solicitors who specialise in EOTs and who will explain things clearly. We worked with Brabners — not the cheapest, but worth every penny. They guided us through every stage, kept us compliant, and made a complex process feel manageable.
- Understand this is not a quick exit plan. An EOT isn’t a handover and walk away. You’ll stay involved for several years, coaching and mentoring your team as they grow into leadership. It’s not about leaving the business — it’s about leaving it in capable hands.
Andrew explains: “Typically the original business owners receive an initial payment as part of the transfer of their shares to the EOT. This upfront payment usually comes from the company’s existing cash reserves at the time of the sale. The remaining balance is paid over time, typically made from the company’s post-tax profits. The total payout period is often spread over several years, in some cases eight years, depending on the company’s profitability.”
“It was scary to sign the papers, but also a relief.” Continues Sharon. “We are no longer the owners of the business, but we are still Directors steering the ship. Like all business owners, we have sacrificed a great deal to build our business. Signing the business over to the Employees was liberating, but also ensures that there are control mechanisms in place so the business continues to operate in the same way it always has.”
“When it came time to share the news of our move to an Employee Ownership Trust, we wanted it to be more than just an announcement — we wanted it to be a moment that brought everyone together. So, we gathered the whole team for a day of connection, reflection and fun. At the end of the event, we shared the news: our business was becoming employee-owned.
We explained what it meant — that we weren’t stepping away, but stepping alongside them for the next few years — to mentor, guide and support. It was about creating opportunities for everyone to grow, to take ownership, and to shape the future of the company they help build every day.
We gave everyone time to absorb the information and explore the Q&A sheets from Brabners. We hoped they’d feel proud and excited about the future. They did. The energy shifted almost immediately — conversations turned to how we could work smarter, protect our culture, and strengthen the business together.
Becoming an EOT has been one of the best decisions we’ve made. It ensures our values, culture and purpose live on, while recognising the people who made it all possible. We started this business to change people’s lives — and that will continue, but when we finally step back, we’ll know we’ve also changed the lives of everyone we employ.”
