Highland-based Reid & Fraser has made history by becoming Scotland’s first employee-owned full-service accountancy firm.
Director Stuart Walker said the move to employee-ownership, would help “secure the future” of the firm, which has offices in Thurso and Wick.
The company, which was founded in 1915, currently has 17 employees who now all own a stake of the business through the employee ownership trust (EOT).
EOT easy decision to make
Mr Walker said: “We have loyal employees who have developed relationships with our clients, so adopting employee ownership felt like the obvious route to take.
“It was an easy decision.
“This move will hopefully give both our senior and our junior accountants, and perhaps those looking to make the move to Reid & Fraser, a clear path of progression to director level and a sense of stability that may not be present at other firms.”
Having spent 25 years at the company, Mr Walker said he had seen other firms within the region being bought over and relocated, leaving local professionals with few options, and thus felt it was important to maintain the accountancy firm’s independence.
Secures future of business for employees
He added: “To think of selling or merging the practice didn’t sit right with me because there would always be that uncertainty surrounding the future for our staff and clients should there be a merger or relocation.
“However, with employee ownership it shifts the control and emphasis of the business to those which matter most, the staff.”
Mr Walker looked towards the professional accountancy body, the Institute of Chartered Accountants of Scotland (ICAS) for advice on a succession plan as the 50-year-old began to plan his future exit strategy.
Long serving employees Steven MacGregor and Linda Cameron will join him in an enhanced management team.
Firm is ‘trailblazer’
Mr Walker also sought guidance from employee ownership specialists, Lindsays Solicitors and Ownership Associates to navigate the process.
Douglas Roberts, a partner at Lindsays, said: “Reid & Fraser is a trailblazer, setting the path for other firms of accountants to follow.
“They are possibly the first full service firm of chartered accountants in the UK to move to employee ownership so we are sure that others in the sector will be watching with interest to see the benefits it brings, which are many.”
Reid & Fraser offer services in accounts, taxation and business advisory and support services to a wide range of businesses and individuals.
Research published earlier this year suggested that employee-owned firms fared better than other businesses during the Covid-19 pandemic.