What is Employee Ownership (EOT)?

The sale of your business to an Employee Ownership Trust (EOT) is a great exit strategy. Unlike management buyouts, the sale can be vendor-led while allowing you to preserve your legacy and reward your team; all at full commercial value and 0% Capital Gains Tax.

An employee-owned business is a normal limited company run on commercial terms. The key difference is that the shares are owned by a trust for the benefit of all the employees. It uses a new trust company limited by guarantee, so it does not have shares or shareholders which protects employees from liability. It also means there is no direct ownership, enabling the comings and goings of employees and reducing future succession issues. The benefits to you are:

• Maximised exit value for the shareholders with great rewards and continuity for the team
• A legacy maintaining integrity and enhancing culture
• An advisor/vendor-led structure and sale with light due diligence
• The ability for shareholders to step back over time if required
• Controlled succession with no third-party tension
• A better business model, more productive with stronger team engagement

As specialist EOT Trustees we stay impartial, however, we work with several specialists EOT advisors who can help you deliver your transition from valuation to tax, finance and legal work. Please enquire to discuss.