Knights’ Corporate team has supported utilities contractor, Falco Construction Limited, on the transition of its ownership structure to an Employee Ownership Trust (EOT).
Falco’s core business is the design, installation and maintenance of assets for the electrical, water and telecoms sectors. Founded in 2004 by Brendan Griffin, the organisation delivers multi-discipline, complex programmes of work to blue-chip clients.
As part of the move Brendan Griffin, who will sit on the EOT board and continue in his hands-on role as Managing Director, has arranged for Falco to join the Employee Ownership Association (EOA), a body which represents EOTs and which works closely with its members to champion, promote and provide insight into the business case for employee ownership.
"Many of Falco’s 27 full-time staff have been with the firm throughout its rapid development and the transition to employee ownership was the logical next step in its development, says Brendan Griffin:
The creation of an EOT enables us to preserve the legacy of the Falco brand and maintain its status as an established partner for utility providers well into the future.
This development safeguards the future of Falco for the benefit of its future leaders and employees and acknowledges their contribution to the company’s development and gives all employees an opportunity to share in its continued success, since by creating an ownership culture we can more effectively incentivise and accelerate growth.”
Daniel Tozer said: “This was a rewarding transaction to be involved with, working with a brilliant team of advisors. An EOT is a special form of employee benefit trust introduced by the Government in 2014 in an attempt to encourage more shareholders to set up a corporate structure which facilitates wider employee-ownership, albeit via an indirect holding company. We expect to see more businesses using EOTs as an alternative to a trade sale or MBO.
This transaction was smooth, delivered on time and saw a fantastic business with a bright future transition to employee ownership. We wish Brendan and the wider team every success for the next phase of Falco’s growth.”