Academy of Music and Sound adopts a new business model

The Academy of Music and Sound (AMS), Gateshead has converted to an Employee Ownership Trust (EOT), becoming the first of its kind within the higher and further education sectors.

During their 25 years in music education, the Academy has welcomed more than 5000 students onto courses in popular music, production and music business with alumni including Lewis Capaldi.

As specialists with highly recognised, funded qualifications and options, AMS has built their offering to include centres in burgeoning music hotspots in Gateshead, Exeter, Edinburgh and Glasgow in addition to an extensive online portfolio.

The independent academy's long-term success has been in part to their mutable nature, 'always changing and adapting to keep in-step with changes in the modern music industry'. This attitude translates to their business focus as they change direction by converting to an Employee Ownership Trust (EOT).

In relation to their conversion to an EOT, Kevin Harding, Founder of AMS, said:

Rather than a retirement share sale to a competitor or trade sale, this EOT opportunity was a great way for employees to take control of the company and be confident about their future. Having put in over 25 years of hard work since founding the business, I wanted the brand to remain and for the transfer of ownership to be a legacy and the EOT has achieved this. There are financial benefits for both employees and shareholders so all in all it's a win-win for everyone and I cannot recommend an EOT highly enough to any business considering an exit strategy which recognises the value of its employees, brand and place in the community.

Councillor Catherine Donovan, Deputy Leader of Gateshead Council said:

To realise the benefits of a Community Wealth Building approach we help more businesses to develop new ways of working in order to achieve inclusive outcomes.  Locally owned and socially minded enterprises are more likely to employ, buy and invest locally so are more financially generative for the local economy and help to lock wealth into place. The Council's Business Gateshead team are keen to speak to any business interested in converting to an alternative ownership model.