Mitchell & Brown, a division of TVD Group, transitions to an employee-owned business
Following another record-breaking year, industry leading technology solutions business, TVD Group, has facilitated the transition of a 51% stake in the company to employees, with the Brown family retaining a 49% share. The arrangement sees the creation of an Employee Benefit Trust (EBT) that holds shares of the business on behalf of employees, with every member of staff with 12 months of continuous service becoming a co-owner of the business.
The move follows other famous brands in the electrical sector, such as Richer Sounds, that have seen the business go from strength to strength under employee ownership. After more than a quarter of a century of growth as a family business, TVD owners Mat & Dan Brown announced the restructure as the foundation to the next chapter for TVD.
Mat Brown, CEO, commented that, “Growing TVD into the business it is today has taken huge focus, dedication and hard work over the last 27 years. We can’t think of a better way to secure the future and independence of the business than to make the people that drive the business forward every day co-owners.
We still have the same hunger and ambition for the business, perhaps even more so now with this exciting structure! This opens up many opportunities for TVD and its fantastic co-owners, as well as enhancing the relationship for our loyal suppliers and customers”.
Following 27 years in business and with a continuing key strategic aim of sustainable growth, TVD Groups’ restructure to an employee-owned business is a long-term commitment to both the future of the business and the team that have underpinned its ongoing success. This new structure will facilitate greater collaboration and inclusivity for co-owners, helping to create opportunities while protecting and enhancing the culture and values that has created such a successful business.
Proven benefits of transitioning successful UK companies to EOB status include more engaged employees with a greater sense of transparency and fairness at work, higher productivity, increased revenue and greater business resilience into the future. Giving employees’ a direct stake in the profitability of the company also helps to drive efficiencies across the business to reduce costs.
Lucia Maguire, Managing Director, commented, “This is a really exciting time for TVD. We have a superb team, who as co-owners, will be able to help drive the business forward for the next 25 years and beyond. We want to be able to provide organic, sustainable growth for the group and having a structure that gives the business longevity, as well as being proven to facilitate engaged and motivated employees, puts us in a great position.
We also have the added luxury that the day to day of what we do remains unchanged and with the continued support and drive of the Brown family, this collaboration of co-owners is set for success”.
TVD Group completed the transition to being employee-owned in March and while day-to-day business continues unchanged, the journey of employee-ownership has begun with a series of presentations and plans to set up a TVD Trust Committee to facilitate greater engagement and cooperation for the co-owners of the business. Employees working across TVD, TVC and Mitchell & Brown will also be rewarded with a share in the profits of the business through a new profitability partner bonus scheme.