Employee Ownership Trusts (EOTs) are gaining popularity. What's not to like?!
- Founders get fair market value sale
- Staff get future profits
- Both get big tax savings
Go EO help you transition efficiently and affordably.
Go EO help you transition efficiently and affordably.
Share responsibility
Pass real responsibility to senior staff. It's not just profits that come with ownership, it's responsibility too.
Share profits with the workforce. Staff are less likely to be "downsized" in an EOT sale than a trade sale.
Want to remain part of it? You have more scope to work in the business post EOT sale.
Retain the ethics/culture/brand of the business. No external party taking over to change things.
Zero tax on sale proceeds, and tax free element to staff profit shares. Can sweeten the deal for everyone!
Staff up to it/up for it
Do senior staff have the desire or capability to run the business?
If you personally need lots of money, ASAP, then the prolonged payout from an EOT sale may not be viable.
Companies can be valuable without profits (e.g. typical Silicon Valley start-up). With no profit, the founder won't be paid.