The deal

Business support group, YTKO has transitioned to employee ownership, in a deal supported by our Corporate Finance team.

YTKO was established in 1978 as a privately owned consultancy business, offering business growth and support programmes with a focus on leveraging public funds to drive inclusive economic growth. With the existing management team set to stay on under the new structure, the deal will seek to preserve the independence of the business while enabling all colleagues to share in its future success.

Spread through seven regional offices across the UK, YTKO has helped more than 70,000 businesses, raising over £100 million in funding while supporting the creation of more than 17,000 jobs.

YTKO’s shareholders appointed FRP Corporate Finance as lead advisors to assist with transitioning the ownership of the group to employee ownership trust (EOT), including the provision of share valuation and financial modelling services. The FRP team, led by Partner James Cooper, Director Matt Field and Assistant Manager Lydia Kelsall, also provided tax advice on the sale of 100% of issued share capital to the new EOT.

James Cooper, Partner at FRP Corporate Finance, said: “In recent years, we have seen more and more business owners begin to appreciate the benefits of the employee ownership model, which offers an increasingly attractive succession route and can effectively drive employee engagement and business performance.

“We have developed a deep knowledge and expertise of employee ownership, which enabled us to advise the Directors and shareholders of the business to achieve a solution which is a great fit for YTKO.”

Bev Hurley, Chief Executive at YTKO, said: “After a lifetime running businesses and building YTKO Group to 100+ people and £7.5 million turnover, I thought carefully about various exit and succession options for some time. Establishing an Employee Ownership Trust was the best way to ensure that our values endured for the next 40 years, and that our dedicated team would be able to reap the rewards of their hard work, commitment, loyalty and passion. Choosing the right professional advisors to help us through the process was essential.

“FRP were outstanding, not just in terms of their expertise but in how they supported us – swift and practical replies, often out of hours, great availability by phone and teams, a super attitude, and a real team effort. I would absolutely recommend them without reservation.”

Partner, Alex Saunders and Senior Associate, Nina Ryan, at Leathes Prior provided legal sell side advice on the deal.