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FRP Advisory’s corporate finance team has advised London-based Montresor Legal Recruitment in its transition to employee ownership.
Founded in 2012, Montresor is a boutique legal recruitment agency, specialising in placing partners, associates and in-house counsel on a permanent and interim basis. It also enables law firms to offer flexible legal staffing services to their clients.
The business is now wholly owned by Montresor Employee Trustee Limited, which holds the shares on behalf of its employees.
Montresor appointed FRP’s corporate finance team, led by partner James Cooper and director Matt Field and supported by assistant managers Lydia Kelsall, Cameron Robertson and Lucy Day, to help design and implement the transition to employee ownership.
FRP advised on the structure, share valuation and financial modelling and provided tax advice to ensure HMRC’s clearance of the deal.
It also supported the creation of a profit-sharing model where 50% of on-budget profits will now be distributed among staff from year one – an innovative structure that means employees will start to benefit from the outset of the new structure, rather than only after shareholders have been fully repaid the value of their shares.
Cooper said: “After initially working with Montresor in 2022 to conduct a strategic options review for the business, it became clear that employee ownership was the right path for the firm to take to achieve its aim of empowering its employees whilst providing them with a stake in the company’s future.
“The structure that we’ve created together is innovative and impactful. It’s been a pleasure working with Montresor’s team, and we wish the company all the best for its next steps as an employee-owned business.”
Tom Balmer, founder of Montresor Legal, added: “Transitioning to an Employee Ownership Trust is a significant milestone for Montresor, and we’re grateful for the support from the team at FRP in helping us achieve this.
“Legal recruitment firms succeed or fail based on the quality of their people. The structure of this deal, in particular adopting the profit-sharing model from the outset, recognises the efforts of our staff, and positions the firm as an employer of choice within the sector.”
