Happy Is Now Employee-Owned. Here's Why That Matters.

Why Happy chose an Employee Ownership Trust (EoT) over outside investors

Over the years, plenty of investors tried to buy Happy. But they never really understood what the company stood for.

One investor pushed for individual sales commission. But Happy runs on group commission. When the founder asked the team what they thought, the message was clear: most of them said they’d leave. That was the end of that conversation.

Now, the people who do understand the values, the employees, own the business.

Sabina put it best: “It’s an exciting new chapter. I love that we’re securing the longevity of our culture, ethos, and values. Buyers in the past couldn’t guarantee that. No matter what they promised.”

Nicole added: “What I love most is the trust placed in the staff to drive Happy forward while protecting the culture. That kind of trust is powerful. It says we’re capable of leading, building, and thriving on our own terms.”

Protecting company culture through ownership

This isn’t just a feel-good ownership story. It’s about control, culture, and protecting what makes Happy… ... Happy.

One of Happy’s angel investors once sold a company to a rival. Within two years, it went from 200 staff to just 4. That’s the kind of fallout that happens when values don’t align with ownership. And it’s exactly what Happy is avoiding.

That same investor eventually sold another business into an EoT. Years later, most of the team is still there. Long-term commitment. Real stability.

Going beyond the standard EoT model

Happy took things a step further. Most EoTs are straightforward: the founder sells shares into a trust. But Happy also wanted to offer share options to its employees. That’s not standard in EoT models, but they made it work.

And because the valuation in 2022 was low (pandemic timing), those share options are now worth five times more. That’s wealth created and distributed.

How the EoT transition was funded

So how does it work financially? Part of the purchase is funded from reserves in the bank. The rest will come from future profits. “Freedom day”—when the business is fully owned by the trust—is expected to happen within five to ten years.

This all became possible thanks to legislation introduced in the UK in 2014. Founders who sell to an EoT pay no capital gains tax. And employees can receive up to £3,600 a year in tax-free bonuses. Since then, the number of employee-owned businesses in the UK has jumped from 152 to over 2,000.

These tax perks may be UK-specific, but the model isn’t. Companies anywhere in the world can adopt an EoT structure. And the number keeps climbing globally.

Governance structure: How Happy’s EoT works

Happy now has a Trust Board made up of five members: one independent trustee, the founder, and three employees elected by the team. The board doesn’t run the company, it exists to ensure it’s being run in the best interests of the employees.

And because Happy already operates as a self-managed organisation, decision-making is widely distributed. The founder makes very few calls these days. The one responsibility still held? Decisions around letting people go. That burden doesn’t fall on the team.

As Simone said: “Becoming an EoT felt like a natural, meaningful next step. Happy already had a strong culture of trust and empowerment. This just makes it even stronger.”

Sabina added: “Our values—believe the best, celebrate mistakes, help people feel good—aren’t just slogans. They shape how we work and how we deliver for clients. Becoming an EoT has already triggered more involvement from the team: digging into finances, thinking strategically, shaping our future.”

Does Employee Ownership flatten the hierarchy?

That’s what ownership does. It shifts mindsets from “employee” to “steward.” EoTs align perfectly with self-management, shared responsibility, mutual accountability, and collective success.

Let’s be clear: becoming an EoT doesn’t automatically flatten an organisation. The same CEO, managers, or department heads can stay in place. But over time, the presence of employee ownership changes things. Transparency increases. Participation deepens. Long-term thinking becomes the default.

Some EoTs stay traditional. Others evolve. But once ownership is in the hands of employees, the centre of gravity shifts. And the effects compound.

Rachael summed it up perfectly: “I love that it’s radical. And generous. It really makes Happy feel different, like it’s entered a new phase. I’m curious to see what changes now that we see ourselves as the owners.”

A blueprint for culture-driven business

Happy didn’t just talk about trust, culture, and autonomy. They put it into action. Becoming employee-owned wasn’t a gimmick. It was a strategic decision to protect what matters most.

If you want to future-proof your culture, retain your talent, and build something that lasts? This is how you do it.

Start by trusting your people. Then give them the keys.