Employee Ownership Trusts (EOT)

Deciding whether an EOT is commercially and culturally right for you and your business is crucial. We discuss your personal and business aspirations and explore how an EOT structure may align with them. Decisions include how much to sell, timing and how best to preserve your legacy.

You only sell your business once, so getting paid the right amount for all your hard work is vital. We value your business and model how the cash proceeds can be paid. It is important to get the balance right between taking enough value yourself and leaving enough growth potential for the employees.

For EOT’s completing on or after 26 November 2025, CGT is payable on 50% of the gain on the sale of your business. However, there are strict criteria for selling shareholders and for employees to benefit from the EOT. We produce a detailed tax report to optimise the outcome for all parties and avoid disqualifying events post-transaction.

It is vital for shareholders to understand what they are giving up as well as what they are gaining when selling to an EOT. We will offer a balanced view of the powers and duties of directors and how they differ from those of the trustees of the EOT. By taking a pragmatic approach to drafting the legal documents, and by incorporating relevant controls and protections, we ensure an efficient process that works for all.

Our fully integrated approach ensures our commercial discussions around such areas as payment of proceeds and shareholder protections are accurately reflected in the sale and purchase agreement. Ongoing accounting and reporting requirements for the business and the trust will be fully explained.

Where relevant, our debt advisory team discusses the viability of obtaining debt funding to finance the transaction and helps secure it.

Communicating effectively to option holders, your senior leadership and the wider employee group results in positive engagement with the EOT. We run sessions with all stakeholders to ensure they understand how the EOT benefits them.

Our journey with you doesn’t end when the EOT transaction takes place. We will advise you on constituting and running an employee forum and bonus schemes that suit your business. This will help drive the right level of engagement between employees and the EOT. Being on hand to answer your ongoing questions will help ensure you avoid triggering a disqualifying event.