EO Emerges as Best Succession Option for Tech and Digital Transformation Consultants, PTS Consulting Group

After exploring all possible succession routes, employee ownership emerged as the best way forward for technology and digital transformation consultants PTS Consulting (PTS). 

Image: PTS Global

For the outgoing owners of PTS, discussions around succession always came back around to employee ownership (EO).

The company, which has its UK headquarters in London and locations around the world, made the move to 100% EO this spring. 

Company founder and CEO, Kevin Perrett, and his fellow five major shareholders agreed that the time was right to exit.  

A combination of advancing age, ill-health, and the opportunity to set the company up for a future controlled by its main assets – the PTS employees – provided comfort that the hard work Kevin and his fellow shareholders put in to drive success would see PTS thrive for decades to come.

What followed was a vigorous exploration of all the available succession options.  Naturally, the option of an outright sale was considered but the shareholders were keen to retain the brand, culture, and values that had been developed and nurtured over four decades, keeping the company independent and maintaining its trusted partner status with all of its clients.

The company’s compass has long been pointing towards EO. The major shareholders have been discussing the model for half a decade and communicated EO as the way forward to the company over two years ago. 

At heart, PTS is made up of innovators and consultants – this approach felt like the best fit for the entire team as well as the outgoing shareholders.

PTS began the organisational changes in March 2023, with the transition completing in April of this year.  

The success of the transition was due to alignment, a capable project team, a sensible attitude and eye on the future and timing.  

All parties agreed that the timing was optimal with a good set of financial results attained, a strong and vibrant culture with excellent staff morale and a strong management team ready to lead and drive success in the new era.

During this process, the internal legal and finance teams were supported by Andrew Harrison of Co-Ownership Solutions, and Charlotte Benstead of Howden Insurance – both proud member companies of the eoa – and Touchstone Advisory.

Bringing Employees Along on the Journey

Throughout the transition process, the company made sure they were keeping employees informed. 

“From my perspective, the transition was relatively quick and painless,” says Kevin.

“It clearly helped that we had been considering such a move for many years and that this direction of travel had been communicated to staff in plenty of time.”

PTS also benefited from eoa support. At last year’s eoa Annual Conference, the management team were inspired to consider how they drive the business forward from an organisational standpoint. 

They also gained invaluable insight into the different models that could be adopted, learning from the experiences of and making connections with other EO businesses.

Bringing EO to Life

PTS has reimagined its internal operating model, implementing it with buy in from all staff. Acting as one team, employee owners will always have a voice, act in partnership, create together, and drive success.  

The company has also vowed to celebrate its fellow employee owners, revelling in collective achievements, proudly sharing and championing its EO status and the benefits of being employee owned, with the world. 

“The transition to an employee owned trust truly offers an opportunity for every voice within the business to be heard, where dedication will fuel success, and where collective ownership will propel us towards a shared prosperity and renewed pride in PTS – our company,” says Senior Consultant Bryan Edwards.

Going forward, Kevin will be Chair of the company’s Trust Board – PTS EOT Ltd – together with two employee representatives, a fellow ex-shareholder, and an independent trustee. The Board will hold quarterly meetings with the new directors of PTS, ensuring everyone lives and breathes employee ownership.

“It’s great to see more and more businesses transitioning to employee ownership as a proven succession option,” says James de le Vingne, Chief Executive of the eoa.

“The next decade will bring an upsurge of employee ownership as more businesses transition to preserve the cultures and value systems they’ve built. PTS are helping to showcase that EO offers a win-win for any founder exploring succession.” 

Employee Ownership is ideally positioned to provide a sustainable future for a significant number of SMEs facing closure without the right buyer within the next ten years. Discover more about the research and the major opportunity this presents for the flourishing EO sector.