All shares in the company have been played into an employee ownership trust (EOT), marking a significant milestone within the sector which has recently seen several Scottish firms bought over by international counterparts.

Established in 1915, Reid & Fraser has offices in both Thurso and Wick, and the move to employee ownership will allow the practice to continue its focus on delivering services to its pool of local clients.

With guidance from employee ownership specialists, Lindsays Solicitors and Ownership Associates, Reid & Fraser has been able to navigate the transition to the succession model – under the sector regulator ICAS – which will see all 17 of the business’s employees own a stake in the company.

Director Stuart Walker said: “We have loyal employees who have developed relationships with our clients, so adopting employee ownership felt like the obvious route to take. It was an easy decision.

“This move will hopefully give both our senior and our junior accountants, and perhaps those looking to make the move to Reid & Fraser, a clear path of progression to director level and a sense of stability that may not be present at other firms.”

He added: “To think of selling or merging the practice didn’t sit right with me because there would always be that uncertainty surrounding the future for our staff and clients should there be a merger or relocation. However, with employee ownership it shifts the control and emphasis of the business to those which matter most, the staff.”

Long-serving employees Steven MacGregor and Linda Cameron will join Mr Walker in an enhanced management team.

Jeremy Clarke, assistant director of practice at ICAS, said: “Stuart contacted me in early February about his options and it was clear from the outset that employee ownership was the right route to go down.”

Douglas Roberts, partner at Lindsays, said: “Reid & Fraser is a trailblazer, setting the path for other firms of accountants to follow. They are possibly the first full service firm of chartered accountants in the UK to move to employee ownership so we are sure that others in the sector will be watching with interest to see the benefits it brings, which are many.

“By opting for a sale to an EOT, Stuart has secured the practice in its local community, employment is protected and the firm’s loyal clients will see no interruption to service.

“As Reid & Fraser is a chartered accountancy practice, we had to seek approval from ICAS for the proposed structure, although that did not cause any delays. Overall it was a smooth transaction that has delivered positive outcomes for the sellers, the staff and the clients of Reid & Fraser. It was a privilege to provide advice in this memorable deal.”

Carole Leslie of Ownership Associates said: “This is a landmark moment for employee ownership in Scotland. Stuart Walker has demonstrated great vision in transferring Reid & Fraser to his employees.

“We are seeing unprecedented interest in the model at the moment, precisely because business owners like Stuart want what’s best for the employees and customers, as well as define their own exit route.”