Employee Ownership Trust
An Employee Ownership Trust (EOT) facilitates the transition of a company’s ownership to its employees.
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Getting the deal done
Employee Ownership Trusts
An Employee Ownership Trust (EOT) facilitates the transition of a company’s ownership to its employees.
The current owners establish a trust that benefits all employees, allowing this trust to take on the role of the primary owner of the company. This form of ownership provides significant advantages to both the employees and the shareholders looking to sell.
Why an Employee Ownership Trust
Challenges and Solutions
Challenges
Succession issues
You’ve built a successful business; now family members do not want to run it. So, you look to sell it on the open market. That leads to…
Buyer issues
Will a buyer be the right fit to run the business? Will they have the same values, goals and objectives as you and your team? Even if you find a buyer, you still have…
Timing issues
The time from marketing to finding a buyer to agreeing a valuation to negotiating a contract to signing can be 12 months or longer. If you are willing to wait that long, you will have…
Uncertainty issues
4 out 5 small and medium business sales will collapse before completion. You can spend 12+ months on a deal and it could never materialise. If you manage to get through these issues, there is still one more thing…
Tax issues
Selling your business will leave you with a big tax bill, even with entrepreneurs relief. You will lose hundreds of thousands of pounds in capital gains tax.
Solutions
Succession solutions
You sell the business to the team members that have helped you build and run it. The team are more motivated and engaged and transformed into motivated owners
You can be involved as much or as little as you need to be
Buyer solutions
The buyer will be the EOT on behalf of your team. Negotiation is simpler and seamless. There will be no integration or cultural fit concerns. And there is zero interruption to the business.
Timing solutions
As there are no third parties to negotiate with, no solicitors to go back and forth over tiny details, the whole process can be kept on a timetable and completed quickly. We have completed EOT sales in as little as 4 months from being appointed to cash in the sellers bank account.
Uncertainty solutions
A virtually guaranteed sale. Once valuations are set and HMRC clearance is obtained (don’t worry – we do all of this for you), it’s a simple process of signing paperwork and completing the sale (don’t worry – we do all of this for you too).
Tax solutions
Selling your company to an EOT means you will be 0% capital gains tax. You keep all of your sale proceeds.
Are you ready for a certain sale with 0% CGT
Take our 5 minute test to see if you are ready for an EOT.
Learn more about the Employee Ownership Trust
"Want to sell your business? No buyer? No finance? No time? No problem."
Download our Employee Ownership Trust information pack
Unlock the full potential of Employee Ownership Trusts for your business by completing our form to get access to our comprehensive EOT Information Pack!