Case Study: EOT for Funeral Directors

Kingfisher Independent Funeral Services Ltd sell to Employee Ownership Trust

Employee Ownership Trust sale for funeral directors, Kingfisher Independent Funeral Services Ltd

What does the business do?

We are the only team of locally- owned and independent funeral directors with offices in all 3 key towns of Huntingdonshire. We pride ourselves in really caring for our clients and making them feel respected and supported.

How did the business begin?

The business began in 2010 when founder Andrew Hickson made the bold decision to set up his own company having worked within the sector for many years. He felt that he could offer a more bespoke, personal and caring service to local people at a very emotional and challenging time in their lives.

How has the business evolved?

The business has grown and now employs four full-time people and also offers ad hoc work to a number of trusted casual workers. From the original office in St Neots, the company has two satellite bases in Huntingdon and in St Ives. To date the team have supported more than 2,400 local families and residents to plan funerals of their loved ones.

Why was change needed? (in the words of Andrew Hickson)

“I was with my financial adviser discussing pensions and planning for the future when we started to talk about exit plans.

I’m now 54 and it felt natural to start thinking of the company’s legacy and my future wishes. He mentioned the possibility of an employee ownership trust which really appealed – though we did discuss other options. It seemed to chime with our ethos of being a local, caring company run by caring local people.

This way our team would be safeguarded and would have an added incentive to ensure it continues to serve the needs of people in the local area, hopefully for decades to come.”

What are your future plans?

“I won’t be abandoning the business I’ve built – however I will gradually step back from it to spend more time pursuing other interests. I intend to go down to a three day week this year and then gradually I will exit. I’ll be on hand to offer advice and support as a consultant and am more than happy to become one of the new team’s trusted casual workers!

Personally, my partner Tim and I love dogs and we love travelling, particularly in a motorhome as it gives us so much freedom. We intend to spend more time doing those things and we want to enjoy more time together.”

Why did you choose Go EO?

“My IFA John Surgenor put me in touch with Chris Maslin of Go EO. I did look at other options, but Go EO stood out – mainly for me because Chris had actually taken his former company and transferred it into an EOT. That really appealed to me.

He was so knowledgeable and available if we had any questions. It was a process and with Chris’s support it felt relatively easy. Chris was there for us and has helped us no end within his fee – for me, that was worth its weight in gold.”

How has it been in these early days of being an EOT?

“We were a strong little team anyway but I can honestly say it’s been transformational. We now discuss everything and every team member feels confident and comfortable to come up with new ideas and thoughts on a weekly basis.

Phil and Richard have really stepped up into their new roles, and the team have worked very hard. All the staff have had their first bonus so the results are proving that the model is working for us. I believe this will be an amazing legacy.”

Go EO’s comments

“Kingfisher has a very small full time team, supplemented by lots of casual workers (still paid via payroll). This was an interesting dynamic we hadn’t seen before. But it still felt like it could work nicely with an EOT.

Even occasional casual workers still want to feel part of a team. Many of them have worked with Kingfisher for a long time, around other commitments. So whilst their hours may be modest, this doesn’t mean they don’t care. An EOT gives them more interest in the company.

Andrew’s clearly run the business in a caring, semi-democratic way prior to now. The team have always felt well cared for. The EOT helps cement that, and gives opportunities to the more senior recruits to prove themselves, as Andrew gradually steps back from the business.”

If you are interested in finding out more about transitioning to an EOT, get in touch with us at Go EO to see how we can help.