This month, Transcendit became an employee owned company. We spoke with Transcendit Directors Dick Davies, Tom Tinsley, Adam Kuznesof, Lee Irving and Dave Scott to talk about what this means for the business, their employees and Transcendit’s customers.
‘Transcendit has been in business for 24 years,’ says Dick. ‘And one of the things we’ve had to consider as Directors is what will happen when we want to retire. Do we keep working until we can’t anymore, sell it to a third party, or do a management buyout?’
‘None of the options felt attractive to us,’ says Lee. ‘We’re all passionate about ensuring a good work life balance, a management buyout didn’t seem possible, and a third party buying the business felt like it would create a lot of disruption for our clients and our employees. But then I came across the idea of employee ownership.’
‘It struck us that there was a way in which our business could continue to be Transcendit,' says Dave. 'The same culture, the same values, delivering the kind of service that our customers have come to expect which also supported our staff. And as Directors, we could continue to work for Transcendit, or step away; but whatever we did the business would continue.’
‘It fits with our ethos,’ says Adam. ‘The five of us started Transcendit because we felt that we could run a business which was employee focused, and put the needs of our customers first. Over the years the decisions we’ve made aligned with those values, like establishing a profit-sharing plan, and becoming an Accredited Living Wage Employer. Making Transcendit employee owned felt like a logical next step.’
How Transcendit became employee owned
‘For a business to become employee owned, all employees must have a ‘‘significant and meaningful’’ stake in the business,’ says Tom. ‘We’ve established this by setting up Transcendit EOT Limited, which is an Employee Owned Trust. The trust bought all the shares from the previous shareholders, and is responsible for making sure Transcendit meets its financial and legal obligations to our employees and our customers.
'The process is complicated, but we had a lot of great support,' says Lee. 'We worked with Mike Ford at Wrigleys Solicitors, and Sean Hackemann at Specialist Accounting Solutions, and both organisations made the transition as simple and straightforward as possible.'
'We were delighted to have advised the team at Transcendit,' says Mike at Wrigleys Solicitors, 'We look forward to following the company’s progress over the coming years in their new form. It’s an exciting time for any employee owned company as the sector continues to grow and develop.'
“Specialist Accounting Solutions Ltd (“Team SAS”) were delighted to support Transcendit’s journey to become an EOT,' says Sean at SAS. 'We wish our clients and their colleagues a prosperous and successful future as Transcendit has become part of the wider EOT community in the UK.”
What does this mean for employees?
Adam says that the news has been received well by their employees, ‘Creating an EOT has also created a lot of certainty for the future. Regardless of what we do as Directors, our staff don’t need to worry about their jobs. They have that security and stability. Employees can also receive up to £3,600 as a tax-free bonus each year, so it’s financially beneficial for them too.’
‘And our employees have more representation in the business than they did before,’ says Lee. ‘Our Business Support Manager, Helen Littlewood, is the first Employee Trustee Director of Transcendit EOT Limited. Additionally, Helen will be chairing a monthly employee council, and feeding back to the Transcendit Limited board.'
'The employee council meeting will be held once a week, with representatives from each of our teams, as an opportunity to provide updates and voice concerns. The input from those meetings will be presented directly to the Transcendit Limited board.’
What does this mean for customers?
‘One of the things that we’re incredibly proud of as a business is that we’ve worked in partnership with our clients for a very long time,’ says Dave. ‘They’ve helped us to succeed, and we feel a great deal of loyalty towards them. Having acquired a company many years ago and knowing the impact this had on the business and customers we didn’t feel that selling the business was the best route to take. We believe we’ve created a great business, and we want it to continue being a great business.’
‘Our intention is that day-to-day, very little will change for our customers,’ says Tom. ‘We’ll be offering the same dependable, friendly service that they are used to. We care about the professional relationships we’ve built and the reputation that Transcendit has with our clients, and we think this decision will ensure longevity and stability for everyone. And of course, our customers are very welcome to ask us any questions about this transition; we’re only ever a phone call away.’
James de le Vingne, Chief Executive of the Employee Ownership Association, said,'Congratulations to Transcendit and their employee owners on becoming EO; rooting the business, it’s culture and jobs in Gateshead for the longer term. We look forward to supporting them to build on their great approach to transitioning their business to employee ownership, to develop Great EO practices and impacts for the employees, the business, and the community in which they are based.'
‘We’re really proud of what we’ve achieved, and what Transcendit has become,' says Adam. 'And we're excited about the future. This is a new chapter in Transcendit history; one which we believe will be even better than the last.'
