IT firm Port-P transitions to employee ownership
Birmingham based IT solutions provider Port-P has sold a controlling stake to an employee ownership trust. The deal was led by the transactional tax team at PKF Smith Cooper.
Port-P was co-founded by Mark Paget in 1994, with Aaron Harte joining shortly afterwards. The two men worked successfully together to create the leading provider of both cloud based and ‘on prem’ IT solutions that exists today, boasting an array of clients located across the length of the UK. In the firm’s 30th year, it has become an employee-owned firm.
Speaking on the news, Paget commented, “In the year in which we celebrate our 30th birthday, it seems fitting to take the first step in the next stage of our journey. The business has been built on the foundations of our incredible team and it feels amazing to recognise and reward them all in transitioning towards full employee ownership.”
Employee ownership trusts (EOTs) grant employees effective ownership of the company. Studies have shown such structures to motivate employees to drive further growth, as they hold a stake in the long-term success of the company and stand to benefit from any future dividends. Due to these factors, EOTs are 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 over 1,400.
The sale of the controlling stake in the holding company of Port-P saw Jane Jevon and Christina Conlan of Legal Clarity provide buy-side legal advice to the trustees of the EOT, while the deal was led by the transactions tax team at PKF Smith Cooper. The completion marks the team’s second EOT transaction within the technology sector in the past three months. This time, PKF’s team was led by Tax Partner Adam Rollason, who provided tax structuring advice on the deal and sell-side tax support to the selling shareholders.
Rollason commented, “I am delighted to have been able to help Mark and Aaron achieve their collective vision for the future of the company. I have no doubt that the business will continue to flourish under the new ownership structure and I am excited to follow their journey. While employee ownership will not work for every business, it is clearly becoming more prevalent in the tech sector. This is the second EOT transaction which we have completed in three months, and we are continuing to meet similar businesses that are considering employee ownership as a genuine succession planning option.”
PKF Smith Cooper is the home of PKF in the UK’s Midlands region. As the region’s leading firm of trusted accountants and business advisors, the professional services firm operates across key geographies in Derby, Nottingham, Birmingham, and Ashbourne.
Paget added, “The specialist support and guidance provided by the team at PKF Smith Cooper was invaluable in getting the transaction completed within our desired timeframe and we thank them for all of their efforts over the last four months.”
PKF International is a global network of firms. The network's 224 independent member firms operate under the PKF brand in 150 countries, and with 20,000 professionals. The network was listed in Consultancy.uk’s 2023 Top Consulting Firms ranking – with platinum ratings in SME and family business services in particular.
