EOT Case Study – Genesis UK.com

Go EO helped Genesis UK.com Ltd sell to an Employee Ownership Trust

Mike Stevens, the founder, kindly agreed for us to share a few key details, together with quotes about why he chose an EOT, and experience of the transaction/time since.

Genesis UK.com Ltd – EOT sale

Background:

Mike Stevens, originally from Liverpool, was a surfing fanatic. He went to the Welsh coast, working as a waiter for the summer season in 1973 with a dream of surfing every day. This led to him setting up a surf shop in Tywyn in Wales.

A few years later, a craze came over from America of having branded T-shirts made while you wait. Mike came up with some designs, and that was the start of the business people know today.

Situation pre-sale:

More than 50 years later, Genesis UK operates from a 6,000 square foot factory, offering a huge range of promotional and branded merchandise/workwear. They operate as a collective with the best suppliers across the UK.

“Last year I turned 73, and although I’m very active and still love what I do, I’ve lost some close friends suddenly and tragically. I realised I needed to think of the future. I have three wonderful daughters who are not interested in taking the business on, and I didn’t want them to be left with it wondering what to do.

Why he felt the EOT was a good option:

“I took ownership of the issue and researched an exit which sat right with me. Selling the business would be easy, but I worried it would be taken away from Tywyn and my team would lose their jobs. I couldn’t let that happen. This community created my business and has sustained it for over 50 years.”

Mike took advice from Business Wales and was told about creating an Employee Ownership Trust. Mike did some research, and came across Go EO as a suitable firm to assist.

How they feel afterwards (good, bad and ugly!):

“I’m proud to say the business continues to thrive and most importantly it still remains in my community employing local people and contributing to the local economy. I have stepped down as MD, I am on the board of trustees and I come in once or twice a week only as there’s a lot for the team to learn. I did myself drive the marketing and sales function and now I’m teaching them to do the same. For me there is no business without taking marketing and sales very seriously. I know the team now realise how vital that is to take the business through the next 50 years.”

Go EO’s involvement

Go EO dealt with all the legals and financials of the EOT sale.

Given the length of time Mike had owned the business, he found it particularly emotional. The end of an era for him. It helped that Go EO’s Chris had been through the experience himself, so could understand the emotional issues as well as the technical nuts and bolts.

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.