London-based Montresor Legal Recruitment transitions to an employee-owned model.
- FRP Advisory provided expert advice on structuring the transition effectively.
- The transition includes a unique profit-sharing model for Montresor’s employees.
- The firm aims to empower employees and enhance its market position.
- Montresor’s leadership expresses confidence in the benefits of employee ownership.
Montresor Legal Recruitment, a boutique agency in London specialising in legal placements, has transitioned to an employee ownership model. This move shifts the ownership to Montresor Employee Trustee Limited, which now holds shares on behalf of Montresor’s employees.
The transition was facilitated by the expertise of FRP Advisory, whose corporate finance team advised Montresor on the structure of this transformation. The team provided crucial advice on share valuation, financial modelling, and tax strategies to meet the requirements of HMRC’s clearance.
A core element of this transition is an innovative profit-sharing model. From the first year, 50% of profits that meet budget expectations will be distributed among Montresor’s staff. This forward-thinking structure ensures employees begin reaping financial rewards immediately, rather than waiting for shareholder payouts to conclude.
James Cooper, a partner at FRP, emphasised that their strategic review with Montresor in 2022 illuminated employee ownership as the optimal path. “The structure that we’ve created together is innovative and impactful,” Cooper remarked, highlighting the partnership’s successful outcome.
Tom Balmer, founder of Montresor, stated that adopting the Employee Ownership Trust marks a significant milestone for the company. He praised FRP’s support, noting that the profit-sharing model recognises staff efforts and positions the firm as a preferred employer in the legal recruitment sector.
Montresor Legal Recruitment’s shift to employee ownership, guided by FRP, signifies a progressive step in fostering an empowering work environment.
