Hurst advises Instinct Resourcing on EOT transition

Hurst has advised specialist recruitment company, Instinct Resourcing, on its transition to employee ownership. 

The team at the firm that advised on this decision comprised partner Liz Gallagher, who heads Hurst’s tax advisory team, associate tax manager Sam Ryan and corporate finance partner Ben Bradley. 

Instinct, which was founded in 2011 by Mike Ward and Matt Owens, and employs 18 people, has become an employee-owned business as it stays on track to top an annual turnover of £11.5m. 

The Manchester-based company achieved revenues of £9.6m in 2022, its sixth consecutive year of growth. It has also doubled its turnover since 2019 and is experiencing further strong progress this year.

Instinct recruits for temporary and permanent digital learning and learning technology roles across the public and private sectors, including strategists, content creators, content developers and administrators.

According to Ward and Owens, they have received several approaches for the business and considered a range of options, including a trade sale and private equity investment, before choosing to transfer ownership of Instinct to an EOT to “safeguard the futures of its team”.

Gallagher said: “Since its inception, Mike and Matt have steadily grown Instinct into one of the most successful specialist recruitment businesses in the Northwest.

“This success has been in large part due to the quality of the dedicated people employed in the business. This is why Mike and Matt decided on the employee ownership route – to add stability and ensure that Instinct would continue to thrive and prosper with the business now in the hands of the staff.”

Ward added: “Hurst was brilliant throughout the process, from both a tax and corporate finance perspective, showing great professionalism and keeping us constantly updated. The advice we received from Liz and the team was impeccable, and ensured a smooth transition.”