ABERDEEN FIRM OPENS DOOR TO EMPLOYEE OWNERSHIP
An Aberdeen firm which supplies major construction operators across Scotland with the highest quality windows, doors, stairs, and manufactured doorsets has completed its move to becoming an employee-owned business, cementing its future in the North-East.
International Doors and Windows Ltd, which was set up in 2006, is a market leading name across the nation’s building industry supplying National House builders’ with high quality materials sourced locally, from the UK and suppliers from around the world. It also continues to manufacture and supply large Timber Frame manufacturers with quality doorsets.
Currently based at Mugiemoss Road in Aberdeen the company is looking to expand and grow its main operation in the coming months to a bespoke facility nearby. IDAW also operate in the central belt of Scotland and in the north of England from their offices and showroom in Cumbernauld, providing quick access to Glasgow, Stirling, Edinburgh and the north of England.
The firm’s main shareholders Garry Davidson and Scott Paterson agreed their own exit plan should focus on what was in the best interest of their staff and clients, they decided on an Employee Ownership Trust (EOT) to sell their shareholding.
Their move secures the future of the business in the long term and rewards a 12-strong team who – with the support of a large and strong contractor base – have contributed to the company’s success.
Garry said: “This is a great business and I’m delighted with how much we have achieved over the years. As Scott and I looked ahead to retirement in the future, we were considering our options.
A sale to a trade buyer was the most obvious option and would likely have delivered a more lucrative outcome for us as shareholders. But we knew that wasn’t what we wanted. We have an amazing team here and some very sound customer relationships.
By selling to an EOT we hope this will continue and the company will go on to even greater things under the stewardship of the staff.”
Scott said: “Some of our staff have been with us since day one. By taking this route, we know the company will be in safe hands for the future. It really is the best outcome for all parties involved.”
The transaction was advised by accountancy and business advisory firm Azets who have advised on a growing number of progressive businesses choosing to adopt the Employee Ownership Trust model. Legal advice for the transfer was provided by Blackadders.
Azets’ Head of Corporate Finance in Scotland, Graham Cunning explained the move presented an ideal opportunity to build the business going forward.
He said: “A sale to an EOT was the perfect succession solution for Garry and Scott. Both want to phase their exit from the business, confident that the company will continue to grow and flourish.”
Peter Duff, Corporate Partner with Blackadders, who headed up the legal team, explained it will also ensure a smooth transition.
He said: “We are seeing an increasing number of business owners choosing a sale to an EOT as their exit strategy. The model certainly ticks a lot of boxes, providing a tax effective exit for the shareholders and minimal disruption for employees and customers.”
Carole Leslie of Ownership Associates, who provided specialist employee ownership advice for the transaction, said such moves were thriving in the area.
She said: “Aberdeen is home to a number of successful employee-owned companies such as Woollard & Henry, Accord Energy, Houlder Marine and several others.
It has been such a pleasure working with IDAW on its transition. It is a great business with a very positive future – this really is good news for the employees and customers of IDAW.”