Port-P a Birmingham tech firm begins transition to employee ownership

A majority share in the holding entity of a Birmingham-based IT solutions provider has been transferred to an employee ownership trust, in a transaction spearheaded by the transactions tax team at PKF Smith Cooper.

This transaction signifies the team’s second EOT deal within the technology sector in the preceding three months.

Port-P, established by Mark Paget in 1994 with Aaron Harte joining soon after, delivers both cloud-based and on-premises IT solutions, serving a wide range of well-known clients throughout the UK.

The EOT model was initiated as part of a government-endorsed scheme, aimed at encouraging employee ownership by offering all employees the chance to have a significant and meaningful indirect share in the company, including participation in decision-making processes.

The PKF team, under the leadership of Tax Partner Adam Rollason, provided tax structuring counsel for the transaction and sell-side tax assistance to the sellers.

“I am delighted to have been able to help Mark and Aaron achieve their collective vision for the future of the company. I have no doubt that the business will continue to flourish under the new ownership structure and I am excited to follow their journey,” said Rollason.

“Whilst employee ownership will not work for every business, it is clearly becoming more prevalent in the tech sector. This is the second EOT transaction which we have completed in three months, and we are continuing to meet similar businesses that are considering employee ownership as a genuine succession planning option.”

Paget commented: “In the year in which we celebrate our 30th birthday, it seems fitting to take the first step in the next stage of our journey. The business has been built on the foundations of our incredible team and it feels amazing to recognise and reward them all in transitioning towards full employee ownership.

“The specialist support and guidance provided by the team at PKF Smith Cooper was invaluable in getting the transaction completed within our desired timeframe and we thank them for all of their efforts over the last four months.”