Background

Readie Construction, based in Romford in Essex, is an award-winning main contractor in the construction sector, specialising in the delivery of new build, refurbishment and fit-out projects. The company, which was founded in 2008 by Stuart Read, operates in the industrial, logistics and retail sectors as well as several related markets. It has built an established industry reputation by providing a market-leading service to its blue-chip client base, and has achieved strong year-on-year growth. Following on from a previous vendor initiated MBO, Readie’s director and shareholder team decided to explore their options for the business, and approached FRP.

Action

Our Corporate Finance team was instructed to act as lead advisers, working with the executive team to explore a number of options for the company. Having reviewed and considered the various possibilities, it became clear that the implementation of an employee ownership trust (EOT) would deliver the desired outcome for shareholders, while at the same time creating a solid platform for the continued growth of the company. In addition the employee ownership structure would provide significant potential financial rewards for Readie’s 150 plus employees.

Outcome

The FRP team designed the deal structure, creating a detailed financial model and drafting and submitting tax clearances. We also prepared a detailed share valuation for the directors and trustees of the EOT. The whole process was successfully completed in approximately three months, and the business is now in a position to go from strength to strength under this new and progressive ownership structure.

“All shareholders are convinced that the transition to employee ownership is the perfect next step in the journey of Readie Construction. The FRP team has provided considered, honest, practical, commercial and highly professional guidance throughout our time working with them. We have been very impressed with their approach and the depth of knowledge they have shown in exploring all of the options available to the shareholders and the business.” Stuart Read, Chairman and Founder of Readie

Find out more about the process and benefit of an employee ownership trust.