EOTs

In this section:   Trading Company Acquisitions     |     Management Buyout and Buyin     |     VIMBOs     |     EOTs

Employee Ownership Trusts or EOT’s are best illustrated by John Lewis – all of the staff are beneficiaries of a trust that owns the company.

Some reasons why a seller might consider an EOT are:

  • It can be a seamless way to sell the business which is well received by staff, customers and other stakeholders, while leaving the outgoing owner in a senior operational role, remunerated as an employee at a market rate.
  • Under the right circumstances there will be no capital gains tax to pay.
  • Evidence seems to suggest that EOT ownership can drive very positive behaviour from employees who can also benefit from tax breaks and a feeling of ownership.

Success

Davison Fencing

Frazer Hall successfully provided commercial advice on the move to employee ownership by Yorkshire based fencing supplier.

“Steve is knowledgeable, professional and incredibly well informed … and will use him for my next acquisition in the future. “ Haydn Davies, HDI Ltd