For nearly 50 years, Kingsley Plastics has set the standard in its field, serving industries as diverse as oil and gas, electrical distribution, and water treatment. The company’s achievements, including a 100% compliance score in the Achilles UVDB audit, are a testament to its focus on quality, safety, and environmental responsibility.

However, for the founding team, the question of succession loomed large. How could they ensure the business continued to thrive while recognizing the contributions of the employees who had helped build it? The answer lay in employee ownership, a model gaining traction among forward-thinking businesses.

The EOT journey can be complex, requiring careful navigation of valuation, tax, legal compliance, and employee engagement. That’s where Old Mill Corporate Finance team came in. Led by Head of Corporate Finance, Mark Neath, the team worked closely with Kingsley Plastics to ensure a seamless transition.

The Initial Conversations

“The first step in any EOT process is understanding the owners’ objectives,” says Mark. “At Kingsley Plastics, the founders were clear: they wanted to protect the company’s culture and future while recognizing the contributions of their employees. From there, we explored whether an EOT was the right fit.”

EOTs are an increasingly popular succession strategy for businesses looking to secure long-term stability. By transferring ownership to a trust that operates for the benefit of employees, the model fosters engagement and alignment while offering tax advantages to the sellers.

Step 1

Valuation and structuring

Our first task was to conduct a comprehensive valuation of Kingsley Plastics, this is a critical step because it determines the fair market value of the business and ensures all stakeholders are satisfied with the transaction.

Old Mill worked closely with the founders to structure the EOT in a way that balanced their financial goals with the long-term viability of the company. “We aim to create a structure that works not just for the owners, but for the employees who will benefit from it. It’s about setting the business up for success,” Mark adds.

Step 2

Legal and tax compliance

The transition to an EOT involves navigating complex legal and tax frameworks. Old Mill’s expertise ensured every detail was handled with precision.

The team worked with a specialist lawyers to set up the trust, ensuring compliance with HMRC’s rules for EOTs, this includes demonstrating that the trust operates for the benefit of all employees and that at least 51% of the business is transferred to the trust. Getting this right is vital to unlock the tax benefits for the sellers and secure the trust’s legitimacy.

Step 3

Employee communication

The success of an EOT hinges on employee buy-in, that’s why we place so much importance on clear and transparent communication.

Old Mill developed a tailored engagement plan for Kingsley Plastics’ workforce, helping employees understand how the EOT would work and what it meant for them. Mark explains, “When employees realise they now have a stake in the company’s success, it transforms their mindset. It fosters a sense of ownership, which naturally drives productivity and innovation.”

Step 4

Implementation and Beyond

Once the legal and financial framework was in place, Old Mill oversaw the formal transfer of shares to the EOT. But their involvement didn’t end there.

“We don’t just hand over the keys and walk away,” says Mark. “We stayed on to support Kingsley Plastics through the early stages of the transition, providing guidance as they adapted to this new ownership model.”

The impact of the EOT on Kingsley Plastics has been significant. Employees are now more engaged, with a vested interest in the company’s performance. The business itself is more stable, with a clear path for sustainable growth.

Mr Manley reflects on the experience: “We couldn’t have done it without Old Mill. They made a complex process straightforward and gave us confidence every step of the way. Seeing our employees take ownership of the company’s future has been incredibly rewarding.”

“An EOT isn’t just a succession plan—it’s a legacy plan,” Mark concludes. “It’s about securing the future of a business while rewarding the people who make it successful. Working with Kingsley Plastics was a privilege, and their story is a perfect example of how EOTs can create a win-win for owners and employees alike.”

For Kingsley Plastics, the move to employee ownership, guided by Old Mill, has ensured that their legacy is in good hands—those of the people who care about it most.

For the founders, the move to employee ownership offered peace of mind. “Old Mill’s expertise made what could have been a daunting process feel straightforward,” says Mr Manley. “We’re proud to see our employees taking an active role in shaping the company’s future.”

The Old Mill Corporate Finance and Tax Team specialises in helping businesses navigate ownership transitions. With a focus on tailored solutions and long-term outcomes, Old Mill is the trusted partner for companies seeking innovative and sustainable succession strategies.