Business sales in the financial advice sector often focus on trade buyers, consolidators, or private equity-backed platforms. However, for some firms, employee ownership can provide a compelling alternative.

Alexander Beard recently completed an employee ownership trust (EOT) transition after founder Paul Beard stepped back from the business following almost four decades of leadership.

His decision highlights an important point for business owners considering succession. Selling externally is not always the only answer.

Why Alexander Beard chose employee ownership

Paul Beard founded the business in 1987. Over time, it expanded into an international group operating across eight offices and four divisions.

Following the sale of the UK IFA business to MKC Wealth in 2024, Beard transferred the remaining group to management and employees through an employee ownership trust.

He said the decision came after reviewing multiple options with advisers over a year.  The key driver was continuity.  Beard wanted to reward long-serving staff, protect the future of the business, and create opportunities for the management team already leading operations.

He explained that many employees had spent years with the company. As a result, maintaining continuity and recognising loyalty became central to the process.

What makes an employee ownership trust work?

An EOT allows employees to acquire ownership through a trust structure.  Typically, the business funds the transaction over time. The trust acquires ownership while management continues running day-to-day operations.  However, an EOT is not suitable for every business.

Strong profitability is important because the company often funds the purchase itself. Equally important is culture.  Businesses with collaborative leadership models and established management teams tend to suit employee ownership better than highly founder-led organisations.  Continuity is also critical.

In Alexander Beard’s case, management had already been leading divisions for several years. Paul Beard had also stepped back from daily operations before the transition.  This reduced risk and supported succession planning.

Employee ownership versus a traditional sale

Many advice firms considering succession automatically focus on external buyers.  However, employee ownership offers a different route.  Rather than maximising headline valuation, the focus often shifts towards continuity, employee retention, and long-term stewardship.

For some founders, these factors can outweigh a traditional exit process.  That said, EOT structures still require careful planning.  Leadership succession, valuation, cash flow, governance, and long-term viability all need consideration before moving forward.

The importance of exploring all exit options

One point from this story stands out clearly. Paul Beard reviewed all available options before deciding.  This is often where business owners benefit from early advice.

At Gunner & Co., we regularly work with owners exploring different succession routes. These may include trade sales, management buyouts, employee ownership, partial exits, or strategic partnerships.

The right answer depends on the business, objectives, management team, and desired legacy.  Importantly, understanding all options early usually creates better outcomes.

Thinking about succession planning?

If you are considering the future of your business, succession planning should start long before an exit.

Whether you are exploring a sale, management transition, employee ownership, or simply understanding market options, early preparation creates flexibility.

Book a free consultation with Gunner & Co. to discuss your business, succession options, and future plans.