ETL Solutions

Serving some of the world’s leading companies, Gwynedd-based ETL Solutions started life in 2002 as a management buyout of PrismTech’s Transformation Manager technology, a data migration software.

When the founding director who had led the management buyout was approaching retirement, a number of exit options were considered. It became clear that venture capitalists’ interest was in owning the software only, not in retaining employees. This ran counter to the founding director’s intentions. Employee ownership was therefore considered as a way of ensuring continuity while offering a tax efficient exit route.

Converting ETL into an employee owned company was a two-year process and was not accomplished until 2016. A separate company was set up to hold all the shares on behalf of the employees. The company’s cash surplus was used to purchase most of the shares with the remaining shares paid through a deferred payment plan to be paid in instalments over three years, which avoided having to take out a loan. All employees were treated equally and none owned any shares directly.

Social Business Wales supported ETL throughout the employee ownership transition process. They worked with both the pre-existing management and the employee team to explore the different employee ownership models and their implications and then helped them design the preferred approach to the transition to employee ownership. Social Business Wales were instrumental in brokering and supporting the eventual deal structure and provided support in management approaches, setting up an employee forum approach, employee training in governance and the role of a Board and sharing of responsibilities.

“An employee-owned business is the best way of preserving the company and making sure that these highly skilled jobs remain in north Wales. The employee ownership structure means that the new management team has the freedom to make decisions in the long-term interest of the company. Having a stake in the organisation will motivate employees to build on their specialist skills and create a sustainable future in our competitive, highly technical market.”

John Biggerstaff,  former Managing Director of ETL Solutions and now Executive Chairman

Many successful businesses fail because succession is handled badly. This can lead to job losses, losing supplier contracts and even business closures. Social Business Wales has expertise in succession planning and guiding businesses through the employee buy-out process.

For more information on our free tailored support call 03000 6 03000 and ask for Social Business Wales