Over recent months Employee Ownership Trusts (‘EOTs’) have become an increasingly frequent topic of conversation, when talking to business owners, lenders and other intermediaries.
The link below provides a summary of EOT’s, specifically, what can make them an attractive alternative for business owners, who might be looking for an exit or partial realisation of their investment. Provided the relevant conditions are met, some of the key features include:
– The sale proceeds are tax free;
– The employees are motivated to take the business forward, retaining the existing culture; and
– The owners can retain up to a 49% shareholding.
The EOT model is designed for businesses, where the employees are pivotal to the success of the business and where the sense of perpetual ownership by the employees as a collective group, will enable longstanding traditions to be retained yet encourage employees to continuously strive to improve the business.
The model could be of particular interest to business owners who have perhaps struggled to agree a more conventional sale of the business, or are concerned that such a sale would result in undesired changes to their business, employees and customers.
If the EOT model is of interest to you or your business, please do not hesitate to contact us.
To find out more, download our brochure here.