Shuttle Buses has given all its 70 employees a stake in the business, as the current managing director plans for his eventual retirement.
Established in 1990, the Kilwinning-based bus and coach company has 60 vehicles and operates both commercial and subsidised local bus services – including school and private contracts, the MyBus on-demand service and private coach hire.
Co-operative Development Scotland (CDS), part of Scottish Enterprise and the arm of Scotland’s enterprise agencies that supports collaborative ownership models, assisted the company in its transition.
David Granger, managing director of Shuttle Buses, said: “Having considered various exit strategies, it was clear that employee ownership was the best way forward for both me and the business.
“Despite having grown to 70 employees we have managed to retain much of the ethos of a family company; my son and youngest daughter both work here and I think a trade sale could have been disastrous for both them and our other employees.
“Employee ownership gave me a tax-efficient exit, yet retaining both a role and a shareholding in the business, whilst passing on the role of managing director to my son.”
Shuttle Buses commissioned a feasibility study, allowing a more informed decision on whether to move to employee ownership. Once the company had decided to proceed, its transition was project-managed by 4-consulting, with legal services from Blackadders and financial inputs from Williams & Company.
In May, an employee ownership census commissioned by CDS showed that there were 195 employee-owned businesses operating in Scotland. That number has since grown to more than 200.
Clare Alexander, head of CDS, stated: “It’s wonderful to see a company like Shuttle Buses embracing employee ownership – adopting this business model is a great way to preserve the company’s culture even after the original founder retires.
“The fact that we’ve already reached more than 200 employee-owned businesses in Scotland is a fantastic achievement, but with a Scottish Government target of growing that to 500 by 2030, we’re working hard to raise awareness and facilitate even more transitions.”
Scotland is the third largest growth region in the UK for employee ownership, with the sector here increasing by 13% since June 2020.
CDS currently offers advice and support via a 100% funded ownership succession review and employee ownership feasibility study.
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