Simon Everingham is an employee ownership adviser and senior manager and Cristin Craig is a senior legal manager and employee ownership adviser at Baxendale Employee Ownership, providing expert advice on employee ownership in all its forms. An employee-owned business itself, since 1983, Baxendale Employee Ownership has helped more than 300 businesses become employee owned and offers an unrivalled combination of legal, financial and practical experience and expertise in the sector. Simon and Cristin have now supported several veterinary practices through successful transitions to employee ownership.
Across the UK, many veterinary practice owners are re-evaluating what they want from their succession plans. Alongside the practical considerations of retirement or reducing clinical work, owners increasingly want to protect the independence, ethos and community relationships their practices were built on. At the same time, concerns about corporate buyouts, shifting workplace cultures and uncertainty for teams are prompting a closer look at alternative routes.
With consolidation by large corporates and private equity-backed groups accelerating over the past decade, these questions are becoming more urgent. It’s now estimated that around six in ten UK practices belong to large groups, compared with just one in ten in 2013. While some owners welcome a quick and straightforward sale, many are finding that the trade-offs, such as earn-out clauses, reduced autonomy and the impact on team morale – are too significant to overlook.
In May 2024, the Competition and Markets Authority (CMA) launched a full market investigation into the veterinary sector, reflecting public concern about reduced choice, rising prices and the longer-term effects of consolidation on local communities. As scrutiny grows, practice owners are increasingly asking whether a different approach could better safeguard their values, their people and their future.
The appeal of employee ownership
For many independent practices, the starting point is simple: practice owners want a succession plan that reflects the culture they have built. They want continuity for staff, reassurance for clients and a model that doesn’t compromise the character of the practice. This is where employee ownership, particularly through an Employee Ownership Trust (EOT), is gaining attention.
A sale to an EOT transfers ownership into a trust that holds shares on behalf of employees. Day-to-day management remains with the Board of Directors, while EOT Trustees ensure that major decisions continue to align with the long-term interests of the team. Crucially, profits generated by the practice ultimately benefit the people who contribute to its success.
For owners, this provides a clear route to step back at a pace that suits them, without relinquishing everything that makes the practice distinctive.
Instead of being driven by external investors, employee ownership centres business decisions around the people who work in the practice. Many owners considering succession find the following benefits particularly compelling:
Protecting autonomy and identity – EOTs help maintain the character, values and reputation of a practice – elements owners often feel could be diluted under corporate control. With ownership held for employees, decisions remain rooted in the needs of the team and community.
Continuity for clients and employees – Practices already known for collaborative, respectful cultures often find that employee ownership enhances this further. For many teams, the reassurance that the practice will not be sold multiple times, restructured or repurposed is a major source of stability.
Supporting and empowering the workforce – The model gives staff a genuine stake in the future, strengthening engagement and supporting recruitment and retention. Research from the Employee Ownership Association highlights that employee-owned businesses often outperform traditional models in productivity, innovation and investment in their people. Tax-free profit bonuses add an extra incentive for teams.
A smooth, flexible transition for owners – An EOT allows owners to phase their exit, offering time to mentor successors, share leadership responsibilities and preserve continuity. This avoids the abrupt culture shifts sometimes experienced after corporate buyouts and maintains the leadership capacity practices still need.
Financial clarity and potential tax advantages – Employee ownership can be attractive from a financial planning perspective. Sellers may qualify for a 50% relief on the capital gains tax payable on shares sold to the EOT, and employees can benefit from income tax-free bonuses. The predictable structure of EOT financing also helps ensure long-term stability for the business.
Business stability – With the EOT providing oversight rather than intervention, operational management remains largely unchanged. Leaders continue running the practice as before, while the Trust ensures that the organisation remains anchored to its values and responsibilities to staff.
Real examples of employee-owned practices
A growing number of UK practices with a progressive outlook have transitioned to employee ownership over the past years, including Moray Coast Vets, Donald S. McGregor and Partners and Pennard Vets. Their experience confirms that the EOT structure is effective in practice: offering fair returns for retiring owners, reinforcing organisational culture and giving teams a genuine voice in shaping the practice’s future.
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