Myerson Solicitors, based in Altrincham, has elected to transition to a 100% Employee-Owned Business (EOB) model. This move positions Myerson as the first law firm in Greater Manchester to adopt such a structure.
Founded in 1982 by Neil Myerson, the firm serves both business and private clients across the UK. The transition to an Employee Ownership Trust (EOT) is a significant milestone for Myerson.
Myerson’s Transition to Employee Ownership
Myerson Solicitors has officially transitioned to a 100% Employee-Owned Business (EOB), representing a landmark shift in its operational structure. Becoming the first law firm in Greater Manchester to adopt this model, Myerson’s 150 employees will now benefit from tax-free bonuses. This strategic move is part of the firm’s continuous efforts to maintain stability and independence.
Established by Neil Myerson in 1982, the firm has demonstrated consistent growth and success. For the financial year ending 31 August 2024, Myerson achieved a 15% organic growth, with revenues reaching £17.5 million. The firm’s decision to move towards employee ownership aligns with its longstanding commitment to its people-centric culture.
New Governance Structure
As part of the transition, a new Board of Trustees has been appointed to ensure the organisation’s operations are conducted in the best interests of all its employees. The board includes Steve Tudge, Joanne Evans, and James Birch, who will oversee the trust’s management.
Additionally, the existing management board, led by Chief Executive Officer Carl Newton, will continue to direct Myerson’s operations and strategy. To ensure a holistic representation, Jordanna Reynolds, People Director, has been included on the board to represent the HR function.
Rationale Behind the Decision
Carl Newton, Myerson’s chief executive, emphasised the importance of this transition in maintaining the firm’s stability and independence. He stated, “Becoming an Employee-Owned Business allows us to give every single employee a stake in our firm’s financial success; it empowers our people, attracts top talent, and reinforces our people-centric culture.”
The preference for an Employee-Owned Trust over private equity reflects Myerson’s commitment to its employees and long-term vision. In an industry increasingly dominated by mergers and acquisitions driven by private equity, Myerson’s decision stands out.
Market Context and Adoption
Employee Ownership Trusts (EOTs) have been gaining traction in the UK since their introduction in 2014. However, their adoption within law firms has been relatively low, with only 20 firms choosing this model so far. Myerson’s decision to embrace this model is thus both pioneering and indicative of a potential shift in the sector.
The legal work facilitating this transition was carried out by Corporate Partners Terry Moore and Akeel Latif, both experts in the field of Employee Ownership Trusts. Their expertise ensured a seamless transition for Myerson, highlighting the increasing relevance of such legal specialisations.
Benefits for Employees
One of the most immediate benefits of Myerson’s transition to an Employee Ownership Trust is the provision of tax-free bonuses to its employees. This financial incentive is expected to boost morale and productivity, fostering a more engaged and motivated workforce.
By giving employees a direct stake in the firm’s success, Myerson ensures that its workforce is aligned with the firm’s objectives. This alignment is anticipated to enhance performance and drive further growth, building on the 15% organic growth achieved in the last financial year.
Strategic Implications for Myerson
From a strategic perspective, Myerson’s shift to an Employee-Owned Business model positions it favourably in the legal market. The firm’s commitment to independence and stability sets it apart from competitors pursuing private equity investments and frequent mergers.
Myerson’s emphasis on employee ownership is likely to attract top talent who value stability and long-term growth opportunities over short-term gains. This strategic positioning could lead to sustained success and further establish the firm as a leader in the legal sector.
Future Prospects
Looking ahead, Myerson’s transition to an Employee Ownership Trust is expected to yield significant benefits. The firm’s focus on empowering its employees and maintaining independence is a strong statement in the current legal market landscape.
In conclusion, Myerson Solicitors’ transition to a 100% Employee-Owned Business model represents a bold and strategic move. This decision not only aligns with the firm’s commitment to a people-centric culture but also positions it favourably in the competitive legal market.
The introduction of an Employee Ownership Trust will benefit both the firm and its employees, fostering a sense of shared success and mutual growth as Myerson continues to thrive.