Back in July, the LAVA team got the exciting news that we were becoming an Employee Ownership Trust (EOT), with partners Simon Woodcock and Hamish Martin selling 100% of their shares to the new structure.
As you'd expect from M&A experts, there were plenty of questions and details to be explored, but it was quickly apparent that this felt like a really positive step not only for the future of LAVA, but for all of us who call it home.
Business owners looking to transition to an EOT have quite a few different options to consider, including what percentage of shares to transition, the length of service employees need to be included, and whether to apportion funds within the EOT based on salary, length of service, or hours worked. As the first EOT of its kind within the M&A advisory market, there were no previous examples to reference and Simon and Hamish were breaking new ground, but given that's why they started LAVA in the first place, they weren't deterred.
Simon too, is really happy with the outcome and feeling buoyant about the future of the team:
In LAVA's case, this investment has meant hiring three Associate Directors instead of one. This might be considered too bold a move if you're having to consider what EBITDA might look like in six months time, but with an EOT in place it allows us to really ramp up growth while protecting the culture we've worked so hard to embed.