EQ supports Glenrothes-based Surface Heating Systems Ltd in VIMBO transition
EQ Accountants has supported Surface Heating Systems Ltd (SHS) with a vendor-initiated management buyout (VIMBO), allowing the owners to release some value from their business and put a robust succession plan in place.
Founded in 1997 by directors Mick & Helen Cummings and Andrea Blyth, SHS is based in Glenrothes and are experts in the design, supply, and installation of quality electric surface heating products to suit almost any application, for industrial to domestic uses.
The directors spoke to EQ partner Steven Todd, based in the firm’s Glenrothes office, and the team at EQ about their decision to retire. After discussing various options, they preferred to give the existing staff the opportunity to run the business rather than sell to a third party. The directors and the staff agreed that a VIMBO would be the right solution, which would allow the existing directors to exit from the business and allow the staff to take over the ownership of the company.
Founding director, Mick Cummings noted: “The business is where it is today because of the support of the great staff that we have in place. I wanted to ensure that they continued to have an active role in the business after I retired and the VIMBO was the best vehicle to achieve this.
“I very much appreciate the support and advice provided by Steven and the team at EQ to allow this smooth transition in ownership.”
New director, Samantha Cummings, added: “My Mum and Dad have run a very successful business and I am proud to be taking the business forward after their retirement.
“The VIMBO has allowed us to take ownership of the business in a cost-effective manner that doesn’t put huge financial pressure on us as new directors and owners of the business.”
Mr Todd said “When considering their business exit plans, more and more clients are considering VIMBOs or Employee Ownership Trusts (EOTs).
“They can both be very effective in the right circumstances, and we regularly help clients find the right solution for their business. We encourage businesses to think about their future plans and get in touch to discuss the options available for them.”