Why Exit Via an Employee Ownership Trust (EOT) Instead of a Trade Sale or Investor Deal?
Selling to an EOT provides the assurance of completion at a fair value. Unlike trade sales or investor deals—which can collapse...
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Selling Your Business
To An Employee Ownership Trust
Explore Your Business Exit Options
Via Employee Ownership
The Smart Exit Strategy for Business Owners
Explore the benefits of a tax-efficient exit that rewards your employees and ensures long-term success.
An increasing number of business owners are choosing to sell their companies to their employees through an Employee Ownership Trust (EOT). This method of sale, when properly structured, are typically swift, conducted at full market value (pending approval from HM Revenue and Customs), initiated by the seller, and serve as a valuable reward for employees.
Tax Benefits of Selling Your Business
Via An EOT
1,700+
Employee Owned
UK Businesses
The Employee Ownership Trust (EOT) marketplace has grown significantly since the HMRC introduced tax-free status for exits into these structures, as part of the Finance Act 2014. An EOT allows business owners to sell their shares to a trust, which holds them on behalf of the employees, promoting indirect employee ownership. This model has gained popularity due to its tax efficiency and the potential for improved company performance and employee engagement.
As of recent reports, there has been a surge in the number of companies transitioning to employee ownership, with nearly 500 new EOTs established in the year ending September 2022, a substantial increase from previous years. This growth indicates a growing interest in the EOT model across various sectors, particularly in professional services, construction, and manufacturing. The model is celebrated for fostering a more inclusive and motivated workplace culture, akin to the well-known "John Lewis model" of employee ownership in the UK.
The Rise of Employee Ownership Trusts
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Is an EOT the Right Exit Strategy for you?
See If Your
Business
EOT Qualifies
Your Guide to Employee Ownership
We work with highly experienced and seasoned advisors with Employee Ownership solutions that offer a comprehensive, all-inclusive service. Our expertise encompasses various aspects such as structuring the deal, determining the valuation, arranging financing, handling legal matters, selecting trustees, and providing support during the transition. This is achieved with minimal interruption to your business operations. To learn more about how we can assist you in facilitating such a sale, please reach out to us for a discussion or fill out the enquiry form below.
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We value your interest in employee ownership and are here to support you on your EOT journey. If you have any questions, need guidance, or simply wish to share your EOT experience or insights, we would love to hear from you. Please complete the contact form with your details and message. Whether you're confidential seeking advice, looking to contribute to our insights section, or just want to connect, reach out today and let's make employee ownership work for you.
Get in touch
Head of Our Employee Ownership Team
Tony Vaughan heads our Employee Ownership team, offering over three decades of entrepreneurial expertise and having facilitated more than 100 successful business exits. With his wealth of business acumen, Tony crafts effective and tax-efficient exit strategies tailored to each company's needs.
Tony and his team are dedicated to collaborating with business owners who wish to consider employee ownership as a means to secure their business's legacy, reward their staff, and ensure lasting continuity. His approach emphasises confidentiality, professionalism, and bespoke solutions that align with each business’s unique requirements.
If you’re contemplating transitioning your business to Employee Ownership, Tony is ready to assist. His extensive experience and leadership in this field make him the perfect partner to guide you through the process and realise a successful transition.
Contact Us Today
For a private discussion about your business and the potential of Employee Ownership, contact Tony Vaughan at tony@eot.co.uk
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