“We wanted to maintain what we had built after we leave”
transcendit (employee owned since September 2024)
Specialism: IT support
HQ: Newcastle upon Tyne
Staff: 24
Q&A with Director Lee Irving
What was the trigger for you becoming an employee-owned business?
Succession planning.
We started the company in September 2000 with the five original founders and with funding assistance from family and friends. Two of the founding directors have now retired and the remaining directors were not getting any younger.
We explored the various options, including management buyout and third-party sale, but settled on moving to an EOT. We felt this was the best way to maintain the company ethos we had built over the years and best protected our customers and employees.
We have built a family-friendly company that has no expectation of people having to work overtime, allows time for family emergencies, wellbeing days and profit-related pay – and due to this we have excellent staff retention. We wanted this to continue, long after the founders have left the business
What was the most challenging aspect of becoming an EOT?
It’s early days, but so far, it’s been quite an easy transition.
You’ve been an EOT for four months. Do you expect it to have any impact on any of your KPIs, for instance staff retention?
So far there has not really been a noticeable difference as our intention was to maintain what we had built. We have instigated an employee voice where representatives from each department meet with the employee trustee, who can in turn present to the board. This gives the employees another channel outside of the usual management structure to make suggestions and raise issues.
Are you aware of any mistakes or pitfalls other EOTs have made or encountered?
The biggest issue seems to be if the owners are adopting an EOT for the wrong reasons, ie looking at the capital gains tax breaks. If that is your reason, then you are probably not starting your journey on the right foot. We wanted to maintain what we had built after we leave and to continue to have a sustainable business for our employees and customers.
What message would you have for other MSPs or IT consultancies contemplating becoming an EOT?
There is a lot of legal work to set up the structures required – ie the Trust – however we hope that this is all going to be worth it in the long run.
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