Prominent Yorkshire law firm Guest Walker Solicitors has successfully transitioned to an employee-owned business with the support of corporate law specialists at Ison Harrison. The shift was achieved via the establishment of an Employee Ownership Trust (EOT), marking a significant milestone in the firm’s commitment to long-term sustainability and inclusive growth.
Founded in 1981 and situated in the historic Shambles area of York, Guest Walker had been actively exploring forward-thinking succession strategies. The goal was to protect the firm’s legacy while preserving its independence, ethos, and trusted client relationships.
Rather than pursuing a traditional sale or merger, the firm’s founding partners opted for employee ownership – a decision grounded in the desire to reward staff contributions and foster future growth. By transferring 100% of the firm’s shares into an EOT, Guest Walker has ensured both business continuity and shared prosperity among its employees.
Expert Legal Support from Ison Harrison
The complex transition was expertly managed by Ison Harrison’s corporate law team, led by Corporate Director Richard Coulthard, with support from trainee solicitor Daniel Allison. The team provided comprehensive legal guidance throughout the process, including:
- Liaising with the Solicitors Regulation Authority (SRA) to gain regulatory approval for the new structure;
- Advising on the tax implications of the EOT under section 236H of the Taxation of Chargeable Gains Act 1992;
- Setting up the corporate trustee to manage the EOT;
- Drafting and negotiating all essential documentation, such as the trust deed, profit-sharing rules, corporate governance agreements, and revised company articles;
- Overseeing the execution of the share purchase agreement and associated authorizations.
Helen Burrows, a Director and former shareholder at Guest Walker Limited, praised the experience:
“We were recommended to Ison Harrison as a very reputable local commercial firm with experience of transitioning to an EOT themselves. Richard Coulthard was able to answer our questions from his own experience and this proved invaluable. His advice was practical and appropriate to us and he was able to introduce us to independent professionals who also advised us on the transition. His handling of the SRA was very helpful in expediting the process and making sure we got everything right. Richard and his team were professional helpful, approachable and efficient in the whole process and have continued to be so in the early days of our EOT development.”
Sustaining Legacy and Empowering Employees
The EOT model enables the firm to remain under the stewardship of its leadership team while entrusting strategic oversight to a board of trustees. Employees do not need to purchase shares or contribute capital — instead, ownership is held collectively on their behalf. Eligible staff may benefit from tax-free bonuses of up to £3,600 annually, contingent on company performance.
Richard Coulthard commented:
“Our client was committed to finding a succession route that protected the independence of the firm while rewarding the people who have contributed to its success. The EOT model offers a practical and ethical solution, and we were proud to help deliver a smooth and strategic transition to Guest Walker Solicitors. We have increasingly been engaged by a range of businesses, including other law firms, to advise on the transition to Employee Ownership as this continues to become an increasingly popular option for succession planning.”
A Vision for the Future
This transition signals a new era for Guest Walker, one focused on sustainable ownership and collective success. As the legal sector seeks more inclusive models of operation, the EOT structure offers a compelling alternative – balancing profitability with purpose and employee engagement.
About Ison Harrison
With a wealth of experience advising owner-managed firms, Ison Harrison has become a trusted name in guiding businesses through succession planning and growth strategies. Their expertise in employee ownership transitions reflects a broader commitment to supporting progressive, people-focused organisations.
To discuss your move to becoming an employee-owned trust, please contact us.
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