Moore Kingston Smith advises Equal Experts on employee ownership transition

Moore Kingston Smith recently guided Equal Experts stakeholders through the sale of the business to its employees, creating an employee ownership trust (EOT).

Equal Experts, a global software and consulting firm rooted in agile software engineering, was founded in London in 2007. The firm uses around 3,000 consultants across ten locations on five continents, specialising in the development of cutting-edge digital products and services. The firm generates over £200 million in revenue and EBITDA of over £30 million.

Among their clients are large corporations, such as John Lewis Partnership, Hargreaves Lansdowne and O2, as well as UK government bodies like the Home Office and HMRC.

Successful businesses like Equal Experts have many potential succession options to explore. The transition to employee ownership underscores the firm’s commitment to its customers, employees, associates and other stakeholders over the long term. Reflecting on this dedication, Equal Experts has been recognised by Glassdoor as the second-best place to work in the UK; a testament to the business culture and values.

Thomas de Cad’oro Granier, CEO and co-founder of Equal Experts, commented: “Since establishing Equal Experts in 2007, we have focused on our people, our main asset. Attracting and retaining talented people has been key to our success, especially during our global expansion.

“Despite offers from other parties, the transition to employee ownership was the only option we wanted to pursue for the future of the business. We believe it is the best solution to secure our culture and retain key employees. We have received positive responses from both employees and clients.”

The project

Equal Experts’ co-founders Thomas de Cad’oro Granier and Ryan Sikorsky start exploring the benefits of the company transitioning to employee ownership in 2014.

From the outset, Thomas and Ryan have sought to create a business with a unique and highly supportive culture. It was concluded that employee ownership was the best way to ensure Equal Experts would remain independent for future generations whilst maintaining the strong people-centric culture that makes the business successful.

In this transaction, and the years of preparation leading up to it, Thomas and Ryan trusted WMT, now Moore Kingston Smith, to deliver the project. As well as supporting the leadership team as they prepared for this change, WMT has been advising and supporting Equal Experts since 2012, providing such services as accounts preparation, statutory audit, payroll, tax compliance and corporate finance advisory.

The delivery

The EOT project was led by Andrew Williamson, Partner at Moore Kingston Smith, supported by Sandra Jeevan, Tax Director, and James Henderson, Corporate Finance Manager. They provided a full advisory service, including:

• Valuation, financial and funding modelling;
• Assistance with financial forecasting and modelling;
• Commercial input and support during the drafting of the legal documentation;
• Tax advisory on share option schemes and related international tax matters;
• Tax clearances;
• Tax advice for individual option holders;
• Payroll and related matters;
• Trust registration;
• Preparation for the exercise of various share option schemes;
• Post-completion matters as required with reporting requirements and internal communications.

This project was particularly ambitious due to its size and global reach, requiring an understanding of cross-border tax and local laws. The Moore Kingston Smith team collaborated with several international firms and UK lawyers to ensure all aspects of the transaction were covered and deadlines met.

Ryan Sikorsky, co-founder of Equal Experts, said: “Thank you to the Moore Kingston Smith team for their hard work. We are impressed with how they managed and delivered a project of this scale and complexity. We trusted their expertise, dedication and commitment to make this move to employee ownership possible, and we are pleased we have secured an independent future for the business that will preserve our culture.”

Andrew Williamson, Partner at Moore Kingston Smith, concluded: “Helping Equal Experts make this move to employee ownership has been one of the most exciting projects we have been involved in. As a business of this size and scale, they are ahead of the curve with this transition to employee ownership – a cross-border project involving different tax laws and regulations. We anticipate many other businesses exploring this strategic option as a viable succession plan especially following the changes in the recent Budget. We wish the founders, and the rest of the Equal Experts team all the success they deserve in this new chapter.”