Second Sight: Finding an exit that works for everyone

Background

Second Sight produces video content for a wide range of brands, from large corporates like the Volkswagen Group, to smaller businesses that need footage of events and conferences, and content for social media. Guy and Donna Shayler built the business over more than three decades and have a team of eleven. Staff turnover is very low, with people only tending to leave when they start a family (and often returning later on!)

Something had to change

Guy commutes from Devon to the Midlands, where the office is based. After more than 20 years, the 220-mile trip each way was taking a toll. Guy was ready for a change, but wasn’t sure what this change would look like. Emails with offers to buy the business would periodically land in his inbox. This never felt the right route. Selling to the team would be an ideal solution, but a management buyout was out of the team’s financial reach.

One night, trawling through the internet, Guy stumbled across Employee Ownership Trusts (EOTs). He knew the John Lewis business model but never thought it could apply to a smaller business like his. He soon found Go EO’s website, which helped him understand the concept and realise it was an option he would like to explore further.

"An elegant solution"

Guy is very open about the fact that a trade sale could have realised a higher sale price, but selling out was never on the agenda. For Guy and Donna, securing the future of the team was a key priority. "It seemed like an elegant solution for us," he says.

As well as looking after the team, it also allowed him to slowly step back. Over the next few years, Guy will stay on as a familiar face for clients and impart knowledge about running the business. “I knew something had to change, and an EOT seemed like the best way to get the change I was looking for, with the least amount of risk.”

The team welcomed new opportunities

Guy and Donna involved the team in the decision making process very early on. “Once everyone got their head around the concept of an EOT, they were inspired and enthused,” says Guy. “People really seem excited by the prospect of growing the business themselves.” Two people stepped forward to take on leadership roles, and the rest of the team responded well.

Several changes illustrate how the team is embracing the changes. After spending years not keeping up their own social media, they have now started posting regularly. “There really is additional energy in the place right now,” says Guy. “Four people volunteered to take on the employee trustee role, which shows the level of enthusiasm for the EOT.”

One of the new directors has also introduced extra leave for long-serving staff. “This is a real symbol of the shift within the business. The team is empowered and have the authority to make decisions. This is ‘us’, not ‘me’ now," Guy says.

Any advice for Founders?

Guy stresses that Founders need to be mentally ready for the exit. “Anyone thinking of exiting through an EOT has to get their head around the fact that the business will no longer be their baby.”

Ask Guy what he would do differently and the answer comes quickly. He would have done it sooner. "If I’d known about it two years ago, I would have absolutely gone for it!"

Go EO's involvement

The speed of the transaction took Guy by surprise. Second Sight wanted it done inside a six-week window to line up with the financial year end - and it was. With Go EO's portal keeping all the moving parts in one place, the process was "ridiculously easy."

Go EO handled the legal and financial elements of the transaction, from valuation and documentation through to HMRC clearance. "Guy knew what he wanted and the team was right behind it, which made the whole thing straightforward," says Chris Maslin, Go EO's founder.