Grosvenor Credit Management & Investigations becomes employee owned

Grosvenor Credit Management & Investigations has transitioned to employee ownership, as the vehicle collection company looks to align its long-term strategy with the success of its staff. The deal was overseen by professionals from advisory firm Quantuma.

Employee ownership is a term for any arrangement in which a company's employees own shares in their company or the right to the value of shares in their company. It is the fastest growing form of business ownership in the UK. According to the Employee Ownership Association, the total number of employee owned businesses in the UK is now at 1,418, having grown by 332 in 2022. This was a 37% increase on the number recorded the previous year, and a record year for growth.

Founded in 2004, Grosvenor Credit Management & Investigations is one of the latest firms to adopt the mode of operation. Specialising in asset recovery, inspect & collect and tracing customers, currently working with the UK's leading hire purchase finance and leasing companies, Grosvenor’s founder has opted to shift to employee ownership to help deliver its next phase of growth.

Ben Lee, who was the sole shareholder of Grosvenor, has realised the majority of his investment, and will remain Managing Director of the firm to provide continuity to his customers and ongoing support to his team. Looking ahead, though, Lisa Pugh and Nigel Jackson will join him on the Board of the TrustCo, in acting as trustees of the company’s new employee ownership trust (EOT).

The sale of shares to the EOT is a transformative step, empowering employees with beneficial ownership of the company, aligning their interests with the long-term success of the company and ensuring an exciting future for the business. By embracing this employee-centric approach, Lee hopes to build on Grosvenor’s culture of collaboration, innovation, shared responsibility and shared rewards.

Lee commented, “This moment marks a significant milestone in our journey, and I want to express my heartfelt gratitude to our incredible team and customers who have supported us on this journey. I am pleased to continue working alongside the team to deliver GCMI’s strategy.”

The transaction was delivered by a team of Quantuma's corporate finance experts: Managing Director Adrian Howells, Manager Richard Hill and Assistant Manager George Fawcett. The team was supported by experts from Quantuma’s sister company K3 Tax Advisory: Managing Daniel Sladen, and Associate Director Dominic Lay; and Managing Director Karl Holmes of K3 Debt Advisory, who secured third-party funding from Allica Bank.

Howells remarked, "We are delighted to have delivered this transaction for Ben and his team. Employee ownership is gaining recognition as a powerful model for sustainable growth, as well as delivering a tax-efficient solution for exiting shareholders. We commend GCMI’s forward-thinking approach in embracing this strategy. We firmly believe that shared ownership will only enhance employee engagement and motivation, supporting GCMI’s continued success in the years to come."

The EOT transaction was delivered in partnership with sell-side lawyer Rebecca Burford, Partner, Charles Russell Speechlys, and Jeremy Hyde, Director, Howes Percival, who acted as a lawyer on behalf of the EOT. The collaborative partnership ensured that compliance with regulations was achieved, in order to secure a tax-efficient deal for the vendor.