Is It time to think about who will own your business next?

If you're the owner or founder of a business, there will come a point where you need to ask yourself a vital question: who will take over when I step away?

This is known as succession planning, the process of ensuring your leadership and ownership will be passed seamlessly on from you to whoever comes next. And while it might seem like a decision for the distant future, the reality is: it’s never too early to start thinking about it. 

Even if you're planning to retire or move on in five, six, or seven years from now, starting the conversation today gives you time to explore your options carefully, ensure a smooth transition, and protect the legacy of the business you've built.

Why employee ownership?

One succession option that’s gaining real momentum across the UK is employee ownership, where a business is sold to its employees, often via a trust. Over the past decade, the number of employee-owned businesses has grown by more than over 1,600%. 

This route has several clear advantages. Transitioning to employee ownership can:

• Preserve your business’s values and culture. Rather than selling to an external buyer who may change the direction of the business, employee ownership ensures continuity.
• Reward your staff. The people who have contributed to the business’s success get to share in its future and enjoy profit-sharing through tax-advantaged bonuses.
• Maintain local jobs and roots. Especially for businesses embedded in a community, this model helps protect jobs and ensures the company remains anchored locally.
• Attractive tax incentives. In the UK, there are significant tax benefits for business owners who sell their company to an employee ownership trust.

It’s not the right fit for every business, but for many, it’s a powerful, people-first solution that safeguards your legacy and secures your team’s future.

Are there employee-owned businesses in the West Midlands?

There are 126 employee-owned businesses, of all sizes, registered in the West Midlands. These include:

• Hockley Mint, one of largest independent jewellery manufacturers in Europe, with a legacy spanning over 70 years, based in Birmingham’s Jewellery Quarter
• Wyatt International, one of the UK’s top B2B Marketing agencies, that was a family-owned business, based in Birmingham, for almost 60 years
• LightMedia, a digital agency offering web design and consultancy for more than 20 years, based in Leamington Spa

How We Can Help

If you’re interested in learning more about employee ownership, the West Midlands Ownership Hub can help you explore your options. We’ll connect you with specialist advisers who understand the transition process - from valuation and legal structure to staff engagement and communications.

We can also introduce you to business owners who have already taken this step and are happy to share their experience.

Succession planning doesn't need to be daunting and you don’t have to figure it all out on your own.

👉 Want to explore whether employee ownership is right for your business? Find out more and complete an enquiry form here