b'ARTICLEWith consolidation by large corporates WHY EMPLOYEE OWNERSHIPand private equity-backed groups accelerating over the past decade, these questions are becoming more IS RESHAPING UK VETERINARYurgent. Its now estimated that around six in ten UK practices belong to large groups, compared with just one in ten PRACTICE 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 By Simon Everingham and Cristn Craig 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 onMoray Vet team on a hill walklocal communities. As scrutiny grows, practice owners are increasingly askingbenefits particularly compelling:whether a different approach could Protecting autonomy and identity - better safeguard their values, theirEOTs help maintain the character, values people and their future. and reputation of a practice - elements The appeal of employee ownership owners often feel could be diluted under For many independent practices,corporate control. With ownership held the starting point is simple: practicefor employees, decisions remain rooted owners want a succession planin the needs of the team and community.that reflects the culture they have Continuity for clients and employees built. They want continuity for staff,- Practices already known for reassurance for clients and a modelcollaborative, respectful cultures often that doesnt compromise the characterfind that employee ownership enhances of the practice. This is where employeethis further. For many teams, the ownership, particularly through anreassurance that the practice will not Employee Ownership Trust (EOT), isbe sold multiple times, restructured or gaining attention. repurposed is a major source of stability.A sale to an EOT transfers ownership Supporting and empowering the into a trust that holds shares on behalfworkforce - The model gives staff of employees. Day-to-day managementa genuine stake in the future, remains with the Board of Directors,strengthening engagement and while EOT Trustees ensure that majorsupporting recruitment and retention. decisions continue to align with the long- Research from the Employee Ownership term interests of the team. Crucially,Association highlights that employee-profits generated by the practiceowned businesses often outperform ultimately benefit the people whotraditional models in productivity, contribute to its success. innovation and investment in their For owners, this provides a clear routepeople. Tax-free profit bonuses add an to step back at a pace that suits them,extra incentive for teams.without relinquishing everything that A smooth, flexible transition for owners makes the practice distinctive. - An EOT allows owners to phase their Instead of being driven by externalexit, offering time to mentor successors, investors, employee ownership centresshare leadership responsibilities business decisions around the peopleand preserve continuity. This avoids who work in the practice. Many ownersthe abrupt culture shifts sometimes considering succession find the followingexperienced after corporate buyouts www.inspiredvet.co.uk13'