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.
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