Growth Shares

Here at Neathouse Partners, our highly professional business lawyers can provide a range of services to help you establish, manage, and understand Growth Shares.

Discover if your company is eligible to utilise Growth Shares today.

Our dedicated corporate lawyers will ensure that Growth Shares strategies can be used to deliver the best results for employers and employees alike.

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What are Growth Shares?

Growth Shares are a type of equity share arrangement that is primarily aimed at private and unlisted UK businesses. In contrast to different shares, assets under this class do not provide employees with voting rights but will allow the shareholder to benefit from the sale of the company or other exit events.

This type of employee share model may be used as a standalone tool or alongside other initiatives like Enterprise Management Incentives (EMI). They are additionally characterised by the fact that companies can put stipulations that limit the threshold (hurdle) at which Growth Shares become included in the proceeds from a sale or initial public offering.

Another key attribute is that there is no time limit on when Growth Shares can be executed. The shares give the employee a stake in the company above the hurdle but will be subject to Capital Gains Tax (CGT) at the point of sale. The acquisition costs are low for employees while the use of the hurdle means that they are an attractive feature for businesses due to the lower market value than ordinary shares.

How Growth Shares Can Benefit Your Business

Growth Shares offer an affordable way for employers and employees to capitalise on the potential of a shares-based model. For workers, there is no tax to pay on shares bought at the fair market value while they will benefit from future exit events even if they do not occur in the foreseeable future.

For companies, it translates to lower costs than traditional shares while simultaneously building an engaged and motivated workforce. Growth shares also serve as a great tool for attracting top talent when other financial initiatives may not be viable.

Other incentives include but are not limited to;

Equity offerings remove the need to raise cash for bonuses or other employee incentives, while the focus on an exit event can protect your cash flow further.
Existing shareholders do not see the current value (at the date granted) of their shares become diluted as they do not operate in the same way as standard shares.
They give your business a competitive edge and can be considered especially useful in high-growth sectors like technology.

We can help you with:

Creating the new class of shares and acquiring the necessary shareholder agreements before amending articles. Valuing the company and establishing the ‘hurdle’ at which point holders become included in the profits.

Starting the growth share subscription agreement and issuing the shares to appropriate employees. Due to the nature of the exit event-driven shares, Growth Shares won’t need any major attention until the time of sale arrives. Want to learn more? Book an appointment with our experts now.

Why Neathouse Partners?

Renowned expertise

Our team comprises of industry leaders and specialists dedicated to staying ahead of the curve in the latest Employment Law, Health & Safety and HR developments.

Services tailored to you

A fully bespoke 1-2-1 client-adviser model, offering a dedicated, fully qualified and experienced advisor to each client, who can handle all documentation and queries on their behalf.

Fixed fees

We base our prices on fixed monthly retainers, so you and your business receive an unlimited service without unexpected bills. This helps you to budget for your HR and Employment Law spend.

What our clients say about us

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“As a company, we have used Neathouse for a number of years. The service throughout has been exceptional. All matters are dealt with in a prompt and efficient manner. James and Gwyn are always on hand to deal with any issues and have provided detailed employment contracts, staff handbooks and advised on complex matters. I would highly recommend Neathouse as a trusted HR partner.”

Amanda Chalmers Executive Assistant Stretton Capital

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“A great service - fast, professional and friendly with accurate information on all things HR.
Full outsourced HR service is provided giving us peace of mind that we remain compliant”

Steve Griffith Business Manager St Gerard's School Trust

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“Having used the services of Neathouse Partners for many years, I’m confident to say that their employment law advice is commercial and focused on the answer rather than the journey! I have recommended the team to many other businesses and have never heard a bad word said.”

Scott Young Director - Corporate Services RedEye

“The experts on hand have been exceptional, their service is excellent and such value for money. If you are considering outsourcing your HR then I recommend you do.”

Courtney Nangle Charity Manager Sue Young Cancer Support in Leicestershire and Rutland

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FAQ

Frequently asked questions about Neathouse Partners.

What geographical areas does Neathouse Partners cover?

We offer services to all businesses and organisations located in England, Wales and Scotland.

Does Neathouse Partners cover my industry?

We provide HR and employment law services across a range of industries, including:

Health and social care
Retail
Hospitality and leisure
Charities
Construction
Engineering and manufacturing
Commercial cleaning
Healthcare

Visit our industries page for more information on the sectors we cover. If you can't find what you're looking for, get in touch and we'll let you know if we can cover your industry.

What makes Neathouse Partners different from other service providers?

We pride ourselves on our professional yet personal service, and build close working relationships with our clients so that we remain accountable for the advice we give. We provide personalised solutions to our clients, tailoring them to their unique business challenges while making them compliant with UK employment law and HR best practices.

As a business owner, you need to focus on what’s really important to your business, with the peace of mind that we're looking after your HR requirements. We draft, edit and prepare your documents on your behalf, so that you can focus on your business knowing you’re fully compliant.

We're a small collective of specialist qualified employment lawyers and HR experts, delivering an outcome-focused end-to-end service that helps you to operate at your best and comply with both UK law and HR best practices.

You’ll be given your own personal HR Consultant or Employment Lawyer, who'll take their time to really get to know you, your business, and how you operate. This enables us to support what’s right for your business, whenever you need it. Our unique offering of lawyer-led employment law services, combined with expert HR advice, means that we can provide a seamless and consistent service to our clients. Unlike other companies offering HR solutions, our services always come at a fixed cost, enabling you to easily budget for your HR requirements, with no financial surprises later down the line. There’s no usage limits and no hidden extras. You can rest assured that all of your HR and employment law requirements are covered.

Which sizes of companies does Neathouse Partners help?

Neathouse Partners caters to a diverse clientele, accommodating the needs of everyone from small businesses with a single employee to large-scale organisations with 7,000 or more employees.

Have inquiries?

Contact our experts

Contact us, and our team will get back to you within 24 hours. We value your questions and are committed to getting them answered quickly.

We offer unlimited HR and employment law advice, covering all matters throughout the employee lifecycle.

Neathouse Partners provide redundancy advice for employers. Our solution-driven, personal service ensures that employers have access to a named and dedicated HR or employment lawyer to help them expertly navigate HR best practice and employment law, regardless of how complex the issue may seem.

Plan, manage, and monitor health and safety in the pre-construction and construction stages of your project.

Support your staff when they are struggling.

Thinking of giving up your business in favour of an EOT? Learn more >

Lawyers at our firm can draft, prepare, review, evaluate and resolve numerous commercial agreements on your behalf.

We provide specialised HR and Health & Safety services for the health and social care.

We offer unlimited HR and employment law advice, covering all matters throughout the employee lifecycle.

Neathouse Partners provide redundancy advice for employers. Our solution-driven, personal service ensures that employers have access to a named and dedicated HR or employment lawyer to help them expertly navigate HR best practice and employment law, regardless of how complex the issue may seem.

Plan, manage, and monitor health and safety in the pre-construction and construction stages of your project.

Support your staff when they are struggling.

Thinking of giving up your business in favour of an EOT? Learn more >

Lawyers at our firm can draft, prepare, review, evaluate and resolve numerous commercial agreements on your behalf.

We provide specialised HR and Health & Safety services for the health and social care.

Growth Shares

Experience the undeniable success of our services – as reflected in our exceptional ratings

What are Growth Shares?