Employee ownership is reshaping the way businesses plan for the future - creating stronger, more sustainable companies where people thrive. At Lindsays, we’re proud to support this growing movement across Scotland through our work with Employee Ownership Trusts (EOTs).
Today is EO day, a chance to shine the spotlight on the growing impact of employee-owned businesses. Specialist advisors say interest in transitioning to Employee Ownership Trusts (EOTs) is growing year-on-year, despite changes to tax rules.
Thousands of people across Scotland are now employed by companies where staff hold the majority stake, with a total turnover of more than £1.5bn.
With the Scottish Government continuing to target rapid growth in employee-owned firms - and with a Community Wealth Building Bill, which includes employee ownership as a key strand, currently working its way through the Scottish Parliament - numbers are expected to rise in the coming years.
The legal view
Our lawyers have advised on more than 25 employee ownership deals in recent years. Reflecting on the challenges faced by SME owners looking to exit their businesses, Nicholas Howie, a Partner in our corporate law team in Glasgow, said:
“An exit strategy can be one of the biggest issues facing owners of SMEs in Scotland. Employee ownership is an increasingly effective - and empowering - way of managing that. It’s transformational for many businesses.
“It allows sellers - often founders or families who have run businesses for generations - to continue to play a role in their future, while putting the legal and financial frameworks in place which create a long-term legacy for their employees.
“Owners who sell their shares to an EOT gain an exemption on capital gains tax. But, on top of that, EOTs are really starting to demonstrate their economic worth.
“Based on what we’re hearing from our clients, the feedback that we’ve had is that businesses which make the change become more productive and profitable because the whole staff team has a stake in its success, with the ability to award employees annually with bonuses of up to £3,600 per year per employee.”
The Scottish Government has a target of having 500 employee-owned businesses operating across Scotland by 2030.
Statistics from Scottish Enterprise show there are now almost 300 employee-owned businesses operating in Scotland, employing more than 7,500 people.
Network ROI, which provides comprehensive IT support and services to more than 60 clients UK-wide from its base in Roslin, Midlothian, made the move to become employee-owned in 2017.
Explaining why he chose this route instead of a traditional sale, then owner Sean Elliot, now the company’s chairman, wanted an ethical, people-first exit strategy.
“It’s one of the best business decisions we’ve made. Instead of selling out to a large buyer, we chose to invest in our people - and it’s paid off in every sense.”
Speaking about the culture employee ownership has helped create, Chief Executive Keith Bevan adds:
“Employee ownership isn't just a legal structure - it’s a mindset. It ensures people come first. Everyone here works hard, but more importantly, they work with purpose and feel heard. That’s what drives us forward.”
“When I joined, I was amazed by the transparency and how much staff knew about the business. In a corporate structure, the people are often an afterthought. Here, they are at the centre of everything.”
Staff share the enthusiasm.
Describing the sense of ownership and shared responsibility, Greg McKenzie, Network ROI’s Training and Development Manager, explains:
“Working for an employee-owned company feels both empowering and rewarding. We have a shared sense of purpose and know that the success we create within the business directly benefits all of us. I feel invested in the work I do, while being more connected to the people I work beside.”
Finance manager Magda Dabrowska adds:
“An Employee-owned company is a step up from any other business. It’s a place where everyone is even, where positions are only titles, where every employee feels valued and is supported by others.”
“This approach encourages people to contribute towards making decisions as well as being open and honest. Those decisions are made in the best interest of the company, and everyone has a voice and is heard.”
Highlighting how employee ownership influences collaboration and professional growth, Megan McGowan, ServiceDesk Manager, reflects:
“Being part of an employee-owned company nurtures a strong personal connection to the business and encourages a collaborative environment that focuses on shared success. As an employee, you feel genuinely heard and empowered to influence key decisions. The company actively supports professional growth, making each of us feel valued and instrumental in shaping its future.”
Lindsays partners with other specialist advisers to help businesses become employee owned. This includes Carole Leslie, Director of Ownership Associates, who is a specialist in helping businesses to manage the change.
Discussing the accelerating demand for EOT transitions, she said:
“The interest in the EOT structure is continuing to accelerate at pace across all business sectors. As awareness grows, more companies are seeking out a succession option that allows the owners to realise their value in the company tax effectively and allows them to control their own exit from the company.
“Organised by the Employee Ownership Association, EO Day highlights the economic and social benefits that can be achieved when employees have a stake and a say in where they work.
“It’s great news for employees. They can be as reassured as possible that their employment will continue for as long as the company continues to be successful, whereas any other succession option would likely lead to disruption and possible relocation or downsizing.”
Carole believes that business owners “are genuinely making the transition to an EOT for their employees”.
She adds: “They are doing it because they recognise the loyalty demonstrated by the employees and appreciate their staff and don’t want someone coming in who hasn’t been part of what they have achieved together.”
“These businesses are reporting higher levels of employee engagement, increased profitability and importantly, approval from customers.”
The theme of this year’s EO Day is Smile, highlighting the difference that the change can make to working lives, livelihoods and the opportunity for people to drive productivity and innovation, as well as better community and environmental impacts.
Published 20 June 2025
