GUIDING YOU ON YOUR EMPLOYEE OWNERSHIP JOURNEY
An Employee Ownership Trust (EOT) enables business owners to sell their company to its employees while preserving the culture, independence and long term future of the business. Since their introduction in 2014, EOTs have become one of the UK’s fastest-growing succession and exit planning solutions.
A sale to an EOT typically involves the sale of 100% of the company’s share capital to a trust established for the benefit of employees, enabling ownership to pass to those who have contributed to the success of the business.
THE BENEFITS OF EMPLOYEE OWNERSHIP TRUSTS
For many business owners, an EOT offers a compelling exit route. Feedback from sellers we have advised following completion of their transaction indicates that employee ownership has had a positive impact on employee engagement, retention and profitability, while helping to preserve the long term values and culture of the business.
In addition, sellers may, and the majority of time do, continue to play a key role in the business. Subject to the relevant qualifying conditions being met, a sale to an EOT will also allow the sellers to benefit from capital gains tax relief.
Beyond Completion — Post-Transition Realities, Risks, and Implications
WHAT HAPPENS AFTER THE EOT TRANSITION?
Moving to employee ownership is only the beginning. This research explores the realities businesses face after completion, from financial sustainability and governance to employee engagement, leadership and long-term growth.
Drawing on the experiences of UK businesses that have transitioned to Employee Ownership Trusts, the report provides practical insights into the challenges and opportunities that emerge as employee ownership becomes embedded.
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Complete your details below to download the full report.
WE ASSIST, GUIDE AND ADVISE WITH:
- Succession planning
- Planning and creation of the Employee Ownership Trust
- Advice on the identity of trustees and their appointment
- Drafting the EOT trust deed, share purchase agreement and other transaction documents
- Post transaction support on filings and company secretarial support
- Implementation of tax-advantaged share scheme
- Project management of the process to completion
Celebrating our 50th EOT transaction
Earlier this year, we reached an exciting milestone at EMW, completing our 50th Employee Ownership Trust (EOT) transaction.
To mark the occasion, Tracy and Jordan visited Liz and Niel at Nicholsons in Oxfordshire to hear first-hand why they chose employee ownership for their business.
Their story reflects what we see time and again: founders wanting to reward the people who have helped build their business, protect the culture and values they have created, and leave a meaningful legacy for the future.
We thoroughly enjoyed working with Liz and Niel and would like to thank them, alongside all of our clients who have trusted EMW to guide them through the transition to employee ownership.
EMW Law were a real pleasure to deal with. Following a competitive quote, they actively supported me and my team through the sale of my company to an Employee Owned Trust. They kept to deadlines, came up with pro-active solutions to the inevitable road bumps and were always available to speak to when needed. I would highly recommend them.
Tracy and her team were absolutely superb and extremely knowledgeable with regards to carrying out the EOT. They managed to make the process very smooth and explained the legalise in meetings in an easy-to-understand manner.
I would highly recommend both Tracey and EMW law for anyone considering carryng out an EOT or other contractual issues.
Tracy provided outstanding legal support throughout our Employee Ownership Trust transaction. What set her apart was her breadth of experience — because she advises equally well on traditional third-party sales as she does on EOT transactions, she was able to give us genuinely honest, balanced advice on which route was right for us, rather than steering us towards the option that happened to be her specialism.
Her technical knowledge of EOT structures was excellent, but it was combined with real commercial pragmatism. She was thorough and highly organised, kept the transaction moving at pace. She was always available to discuss queries and issues with any of the exiting shareholders before they became problems and also happy to help manage relationships with other professionals involved including corporate finance specialists and our bankers.
On a personal level, she was a pleasure to work with — approachable and easy to talk to, while remaining professional and business-like when it mattered. She consistently went beyond what was expected, in particular taking the time to make sure we properly understood the implications of the decisions in front of us.
I would recommend her without hesitation to any business considering an EOT, or indeed any sale process where they want a lawyer who puts the client’s best interests ahead of a particular outcome.
Having decided that an EOT was the best way forward for our company we needed help in getting this over the line and to meet the timelines we imposed on ourselves. Tracy and the EMW team provided that help, and their experience was invaluable in helping steer Mark and myself through the process to get the EOT in place by our deadline. The EMW team were always helpful and explained the process, what was happening and what was required from us, throughout and without them we don’t believe everything would have been in place or as easy as it was to complete.
After exploring various options, it became evident that transitioning to part employee ownership would secure the company’s future, and the team at EMW Law LLP provided invaluable advice and support throughout the transaction.
It was an absolute pleasure to work alongside EMW Law and the team to complete the transition of all elements of this acquisition and merger. It all went smoothly and seamlessly with Tracy and her team.
EMW Law guided us through our business transition into an EOT. The team’s knowledge and experience allowed for a smooth process, providing us with the best advice every step of the way.
After successfully building Multipipe over 20+ years it was time to look at its future and my part in its disposal. Our fantastic TEAM has always been central to our success I felt a trade sale, whilst being the most popular, did not fully secure the future of our people. As soon as I learned about EOT’s I knew I had found the right solution. It then just needed the right team of professionals to help. After seeking advice from business owners who had successfully achieved an EOT sale, Tracy and her team at EMW came highly recommended. From our first informal chat right through to completion of sale Tracy always kept me fully informed and advised using plain and simple language, making what was a huge step for me, disposing of my Company whilst securing its people’s future, a comfortable and relatively painless process.
We believe that giving our employees a stake in the company is the best way to ensure that we continue to deliver innovative solutions and superior service to our clients. We also recognise employee ownership will foster a culture of collaboration and shared responsibility that will drive innovation and growth for years to come. We’re thrilled to embark on this new chapter in our company’s history, and we look forward to working with our employees to build a stronger, more sustainable business. We feel very fortunate to have been introduced to Tracy Evans of EMW Law who’s expert knowledge and advice in this area was instrumental in enabling a smooth transition to an Employee-Owned Business.
The EOT route was the perfect vehicle for us to transfer the business to the new management team and to enable them to grow from the current excellent sales platform – the new energy and enthusiasm is palpable. This is strongly correlated to the support provided throughout by Tracy and her team. We have been very impressed not just by her knowledge, but the efficient way she explained matters in plain English. We have found elsewhere that lawyers can complicate issues, so I have been impressed by the way Tracy has helped us through the many legal documents with patience and clarity, while responding quickly and accurately to any amendments agreed.
Tracy and the wider EMW team have been excellent. Advice has always been clear and concise and no question too silly or request for help too small. Woods Hardwick Ltd have been working with EMW since the last MBO and would highly recommend their services to anyone looking for help.
The transfer of CPC’s business structure to an EOT became an important part of our next stage of growth. The advice and guidance provided by EMW Law enabled us to navigate this complex organisational change and achieve a smooth transition to an employee-owned business in March 2024, marking an exciting new chapter for CPC and its employees.
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