ThinCats turns employees at Derby-based company into stakeholders through Employee Ownership Trust
ThinCats, the leading fintech lender to mid-sized SMEs, has facilitated a successful Employee Ownership Trust buy-out for Derbyshire based P&D Specialist Services Ltd, turning employees into stakeholders as they retain 60% of the business.
Established 30 years ago by two brothers, Pat and Dave Musgrave, P&D is a specialist engineering company that caters for a range of commercial, operational and contractual requirements across multiple sectors.
When succession planning, Pat and Dave wanted to ensure the brand’s longevity in the community. After liaising with JHK, a local commercial broker, and P&D, ThinCats funded a successful EOT buy-out over a flexible four-year loan, with options for re-financing at the beginning of the fifth year.
Pat Musgrave, co-founder of P&D: “From the beginning, John was fantastic to work with because he took the time to develop a relationship and understand our business needs, which is what traditional banks nowadays simply don’t do. At P&D, legacy has always been important to us, and we wanted to keep it that way. An EOT was the only option that checked all our boxes because it not only gives our employees security, it also ensures that the legacy we have built can still be developed within the community. We are delighted to hand the company over to the people who are the most invested and critical to the success of the business – the employees.”
John Brooks, director regional business development at ThinCats: “The benefits of an EOT are twofold: the staff benefit and so does the local community. The UK is made up of business owners, which is why we love facilitating EOTs because we’re putting businesses into the hands of employees and stimulating the potential for growth within the SME community. We are excited to see where P&D grows from here and look forward to continuing our partnership over the coming years.”