How much does an Employee Ownership Trust (EOT) transition cost?

When exploring a sale to an Employee Ownership Trust, one question business owners ask is “How much will it cost?” We break down the key components of EOT pricing, explain what you’re paying for, and address why some EOT services are much cheaper than others.

Understanding the true cost of an EOT transition

The cost depends on several factors. These include the size and complexity of the business, whether they’re providing all the compulsory bits of an EOT sale or only partial service, and whether they’re also assisting with things like coaching for leadership transition, or communications support to get the message out in a positive way.

Typically, a “no frills” EOT process should still at least include:

• Independent business valuation
• Tax clearance from HMRC
• Legal documentation (SPA, Trust Deed, etc.)
• Trust structure setup
• Project management, ensuring the process runs smoothly
• Some guidance, ideally from someone with practical experience of implementing EOTs

Prices will vary significantly, Go EO being one of the lower cost providers, with fees for all the above starting at £6,990+VAT. Other providers may just be offering the legals, or just the financial side of things.

Optional extra – leadership transition support

Some firms will specialise in/include support for your upcoming managers on how to lead, as well as helping the current founder to gradually step back/down. This can be more complex than you might think (humans are funny things!).

Optional extra – communications support

It’s important you get the messaging right. Firstly, internally, so staff understand what transitioning to an Employee Ownership Trust does (and doesn’t!) mean. It’s a confusing concept for most, and people generally fear change.

Founders can be surprised when the initial message isn’t received as positively as they’d hoped! Plus businesses often want to shout about the transition as soon as they’ve made it, let the world know their good news. But again, this should be done with care, so long standing clients don’t get spooked.

Independent trustee

It’s strongly recommended you have an independent trustee on your board (typically alongside a “founder” trustee and “employee” trustee). You may well know someone suitable for this, but if not, we can recommend some suitable people.

Go EO work alongside experts in the above fields, to help ensure your transition is as smooth and successful as possible.

Is there a “cheap” way to do an EOT?

Yes – and no.

If you're looking for a cheap EOT transition, then potentially our base package may be all you want, or need. It should prove more affordable than most. You may find other players with seemingly cheap EOT sale services, but it’s worth checking you’re comparing like with like. e.g. are they definitely including at least:

• A formal independent valuation
• Securing HMRC tax clearance
• All legal paperwork for the sale
• Creating the trust (legally reserved work, so typically requiring an SRA regulated law firm)
• A real human to speak to, with real EOT experience

Your main contact at Go EO, Chris Maslin, sold what was his accounting firm to an EOT in 2021. So he has practical experience of how it works, and some key mistakes to avoid.

Other low-cost EOT providers might reduce upfront costs, but potentially expose you to risks later – particularly if HMRC challenges the structure or employees feel misled.

What’s included in a well-priced EOT package?

A high-quality EOT transition package should cover everything needed for a smooth and compliant transfer of ownership. That includes:

Independent valuation

An objective, well-reasoned valuation is vital – not just to reassure HMRC, but to avoid disputes with trustees or employees down the line.

Tax clearance

Securing tax clearance under section 748 CTA 2010 and section 701 ITA 2007 is crucial to minimise the risk of HMRC challenging the tax treatment of the sale afterwards. It is however worth stressing that even if clearance is obtained, you still need to ensure you continue to meet all the key criteria post sale.

Legal documentation

A sale to an EOT is still a share sale. You need properly drafted documents, including:

• Share Purchase Agreement (SPA)
• Trust Deed
• Director board minutes for both vendor and acquiror
• Shareholder resolutions for both vendor and acquiror
• Revised articles of association for both vendor and acquiror
• Stock transfer forms

End-to-end project management

A good provider will handle communications with you, HMRC, Companies House, and other stakeholders as required, saving you time and stress.

Hidden costs to watch out for

It’s worth asking the provider if there are any other costs you’ll likely need to incur. Unless you’re gifting your shares to the EOT, there will be stamp duty to pay, at 0.5% of the sale price. Whilst 0.5% sounds small, it is of the total sale price, and all payable imminently after the EOT sale completes, even where you’ll have to wait multiple years to get the full payout.

Aside from stamp duty, again it’s worth considering all the items mentioned higher up this page, ensuring you know what is/isn’t included. You can then consider whether you need any of the other items, and gather quotes as appropriate.

Are EOT transitions worth the cost?

Yes – for many businesses, an EOT sale offers:

• A fair exit at market value
• 0% CGT (if structured correctly)
• Long-term legacy protection
• A motivated, engaged workforce

The return on investment from a professionally run EOT can far outweigh the upfront cost. Indeed you’d likely spend far more if trying to do a trade sale, due primarily to broker fees.

Getting value without compromise

If you’re looking for a low-cost EOT transition without compromising quality, it is possible. Some firms (like us) use lean teams and smart workflows to keep costs fair, without cutting corners.

Look for providers who:

• Publish clear, transparent pricing
• Focus solely on EOTs (not general M&A)
• Have multiple success stories
• Offer direct access to qualified professionals

Final thoughts: Cost vs Confidence

Of course, price is important, but it’s vital you’re confident you’ll get a decent service. Does “more expensive” also mean “better”, and “cheaper” mean “worse”? It can be hard to tell beforehand.

If you're serious about transitioning your business into employee ownership, invest in a process that feels right for you, is compliant, professional, and sustainable.

Ready to explore costs tailored to your business?

Try our free EOT Explorer Tool or get in touch for a no-obligation chat.