Business advisory firm, Quantuma, has advised Intec Systems Limited (Intec) on the sale of the business into an Employee Ownership Trust (EOT) structure. The transaction was delivered by Quantuma’s corporate finance team including managing director, Ian Barton and director, Adrian Howells, with support from managing director, Holly Bedford from Quantuma’s sister company K3 Tax Advisory.
Established in 1987, Intec is an IT consultancy that creates custom business applications and development technology, helping clients utilise business management software to deliver market and performance insight.
After 35 years at the company’s helm, co-founders, Stephen Joseph and Timothy Malone, sought an exit from the business to pursue new ventures.
Quantuma played a key role in Intec’s transition into employee ownership, which included delivering a valuation of the business, structuring the transaction, forecasting to validate the structure, as well as tax and compliance support.
The team also advised on the structure of Intec’s new Board of Trustees, providing communication to the staff throughout, including full transparency on how the company would function as an employee-owned business once the transaction was completed.
Completed ahead of schedule, the EOT transaction was delivered in partnership with Stuart Mullins, partner at Clarks Legal, to ensure that all compliance and criteria for becoming an EOT were met, helping to mitigate any inherent risks.
Adrian Howells, director at Quantuma said: “It has been a pleasure working with Tim and Steve to allow them to realise the value they created in their business over many years. Selling into an EOT structure preserves the business in its current form for the staff and ensures the legacy of Intec continues. I’m delighted that Steve and Tim were happy with the result, and the team and I wish them all the best in their future projects.”
Steve Joseph, director at Intec, added: “Holly, Adrian, and Ian worked with us from start to finish on this project. Quantuma has a fully integrated approach to EOTs, and were able to sort everything from structuring, valuation and HMRC clearance, working closely with our lawyer throughout the process. Their advice has been invaluable and they were clear at every stage helping us understand the decisions we needed to make.”
“There were a number of complex matters that needed resolving and their friendly and professional approach meant we felt confident when making choices. They were always ready with an answer to our many questions and they made the experience stress-free.”
