Kontroltek, an established Industrial Electronic and Automation Repairs company, has been acquired by its employees via an Employee Ownership Trust (EOT) in a deal facilitated by GS Verde Group.

Established in 2011, the Bridgend-based company specialise in the maintenance and repair of automation industrial electronic equipment and automation systems.

The company focuses on a variety of industrial electronic equipment - from drives, circuit boards, motors to HMIs, PLCs, and robots - through the valuable range of services they offer. These include software backups, on-site support and supply options with an aim to provide fast turnaround times for repairs.

Industrial Electronics and Automation Sector

Nowadays, the industrial electronics and automation sector continues to be fast growing, with the wide range of technologies and systems available for controlling and monitoring industrial processes and machinery.

There industry consists of a variety of key components that are human-machine interfaces (HMIs), programmable logic controllers (PLCs), sensors, drives and industrial robots. As a result, the Industrial Electronics and Automation sector is crucial for many services including energy management, manufacturing and industrial applications focused on enhancing reliability, efficiency and productivity.

Within the M&A landscape, companies in this sector seek opportunities to integrate up-to-date technologies to streamline operations, expand capabilities, and drive growth through strategic M&A.

How an EOT benefits businesses in the M&A landscape?

An Employment Ownership Trust (EOT) sees a company's employees have a majority share in a business. This drives the business forward to further success and involves the employees in the direct decision-making to help long-term growth. The transaction creates a path for the next phase for the business, which is often lead by an experienced team to continue providing excellent customer service.

EOT's are seen as a positive and friendly route for your company, and has become an increasingly popular transaction in recent years. It aims to promote long-term, sustainable growth for your business and sees employees owning majority shares in your company.

Setting up an EOT (Employee Ownership Trust) is the most common way to facilitate this type of transaction which will allow you to retain some level of ownership. This is managed by several trustees that include previous shareholders and employee representatives. Once the shareholder(s) sell their shares, the newly established trust is then able to control the shares on behalf of your employees.

Employee Ownership is not only hugely beneficial for employees, but also for exiting or selling shareholders, and the future of the business.

How can GS Verde Group's help in M&A Services

As an award-winning corporate advisory firm specialising in M&A services, GS Verde Group provide expert support and guidance to companies in the industrial electronics and automation sector.

We assist companies through our comprehensive M&A services tailored for businesses in the sector such as EOT's, Valuation and Financial Analysis, Strategic Advisory, Due Diligence and Deal Structuring and Negotiation.

By leveraging these services, GS Verde Group helps businesses achieve growth, stability, and enhanced market presence through effective M&A strategies.

The GS Verde Group are business-focused experts in getting deals done. Combining all the services needed to complete a corporate transaction, including legal, corporate finance, tax, accountancy and even communications, GS Verde Group acts as a single advisory team and provides a truly end-to-end service.