If you’ve been exploring the world of employee ownership and employee ownership trusts (EOTs), you’ve probably come across different ‘facts’. You might have heard that EOTs are only for big companies, or that the transition process is ridiculously complex. Not true.
Go EO is here to help sort the fiction from the facts – using evidence and real-world data to bust these myths wide open.
“EOTs only work for certain industries”
There’s an idea that an employee ownership trust is only suited to certain types of professional services businesses – think architects, consultants, maybe the odd tech business. Anything outside that is considered a bad fit.
The facts
This couldn’t be further from the truth. It’s not about what your business does, it’s about how you want it to continue. If you’ve built a strong, sustainable company with a committed team, an EOT could be a smart next step – regardless of your industry.
The stats
According to the Employee Ownership Association’s 2023 report, EOTs are increasingly found in all major sectors of the economy and in every region of the UK. The top five sectors for EO businesses are:
- Professional Services
- Manufacturing
- Construction
- Wholesale & Retail
- Information & Communication
As you can see, EO is not niche. It’s wide-reaching.
The reality
We’ve helped businesses from all corners of the industry landscape transition – from a funeral home and care franchise to a printing business and a record distributor.
EO isn’t just for a certain “type” of business. If you’re thinking long-term, want to protect your team and your culture, and are looking for a succession plan that makes sense, an EOT could fit – whatever your sector.
“EOTs are only for big companies”
When people think of employee ownership, they often think of John Lewis, Richer Sounds or Go Ape – big names with big budgets. Which makes it easy to assume employee ownership is only for the big players.
The facts
In reality, thousands of smaller businesses have made the move to an EOT – quietly, and successfully. In fact, most EOTs in the UK are small and medium-sized enterprises.
At Go EO, we work with companies with teams of between 5 and 50 people. Businesses where continuity matters. Where the team is tight-knit. Where the culture is strong. Many small businesses find that employee ownership protects jobs, keeps the business local, and ensures the heart of the company stays intact.
The stats
The employee ownership association reports that in the UK over 2,250* businesses are employee owned, and that number is growing daily. While the big names grab headlines, the majority of EO transitions happen under the radar in smaller firms. These businesses are the backbone of the UK economy – and EOTs are helping secure their future.
* As of May 2025.
The reality
Just because your business isn’t huge doesn’t mean an EOT isn’t a fit. If you’re looking to step back while keeping your business stable and your team in place, transitioning to an EOT could be the right move to make.
“It’s too complicated and time-consuming”
You’ve heard about transitioning to an EOT, but the process seems to be shrouded in mystery. There’s complex legal stuff, endless documents, months of back and forth.
The facts
Yes, selling to an EOT involves legal and financial work – it’s a business deal. But it doesn’t have to be painful. At Go EO, we’ve simplified and streamlined the process so it’s clear, affordable, and quicker than you’d think.
Our all-in-one model brings legal and accounting under one roof, reducing complexity and keeping things moving. We’ve built a clear pathway with standardised documents and guided steps, so you’re not reinventing the wheel.
The stats
Most of our transitions take around two to three months from start to finish. Using standardised processes and pre-approved structures means we’re able to keep fees and faff to a minimum.
The reality
EO doesn’t have to be a drawn-out, expensive process. With the right support, it can be straightforward, cost-effective, and an incredibly positive thing to do.
“My staff won’t be motivated by ownership”
There’s a belief that giving employees a stake in the business won’t make a difference. That staff will carry on as before, with no real change in mindset or motivation.
The facts
When employees become owners, the dynamics change. Yes, you will always have a percentage of staff that just want to come in from 9 to 5 and do their job. However, for a large percentage of staff, ownership builds loyalty and boosts morale. And this flows through to business performance.
The stats
The numbers reported in the Employee Ownership Association’s (eoa) report – People powered growth 2023 – tell a compelling story about motivation and business performance.
- EO businesses are 8–12% more productive than traditional firms (measured by Gross Value Added per employee).
- 57% of EO businesses have seen profits increase since transitioning.
- EO firms are 25% more likely than non-EOBs to have experienced profit growth over the past five years.
- EOBs are 50% more likely than non-EOBs to offer financial wellbeing support.
The reality
Employee ownership does motivate. It gives people an extra reason to care and a stake in success. That’s good for them, good for the culture, and good for business.
Thinking of transitioning?
“Employee-owned businesses don’t grow”
The myth goes that employee owned businesses lack risk appetite. Without dominant owner(s) driving decisions, they’re seen as cautious, slow-moving, and unlikely to take big strategic leaps – leading to stagnation.
The facts
The vast majority of employee-owned business still have a leadership structure, with senior team members incentivised to drive growth – just like any other business. But unlike traditional models, employees also have a stake in success. When your team has ownership, they’re more likely to be engaged, motivated, and committed to helping the business thrive.
The stats
EO businesses do grow. They are 50% more likely to expand their workforce than non-EOBs – 64% of EO Businesses grew their headcount in the past five years, compared to just 41% of non-EOBs.*
On average, EO businesses are 8-12% more productive than traditional businesses, measured by Gross Value Added per employee.*
* From eoa report: People powered growth 2023
The reality
By transitioning to EOT, you’re not just handing over the reins – you’re giving your team the power to drive the business forward while safeguarding its core values and independence. Instead of an uncertain future under new, external ownership, EOT ensures the business stays in the hands of those who know it best and care about its long-term success.
Thinking of transitioning?
“Selling to an EOT means I can name my price”
Some founders believe that selling to an EOT is like being handed a blank cheque. With no external buyer scrutinising the accounts and no hard negotiations, they think that they can just choose any price, and the business will pay it.
The facts
There is some truth to this myth. If you are happy to sell for less than your company’s worth, yes, you can choose your price. But this phrase is normally used by founders who want to sell for a very high figure.
The rules state that you cannot sell your business for more than an independent valuation. But here’s the loophole: there are no hard rules on how to value a business. It’s subjective. And you don’t need specific qualifications to value a business. So, you could ask lots of people what they think your company’s worth. Whoever suggests the highest number, get them to put it in writing, and that becomes your sale price.
Although you may be able to get a deal signed off to sell your business for an overinflated valuation, the business will need to find the money to pay you off. This means your sale price needs to be something the business can realistically repay over time. Set it too high, and you risk a deal that looks great on paper but never delivers the money to your bank account. If the price tag is too ambitious, those payments might take 10+ years. Or worse, your team who are under significant pressure to generate large profits (with all the reward going to you), decide to leave. If a few key staff go, the business may well collapse, meaning no further payments to you.
The stats
- Most EOT deals are structured to be paid over 5–10 years, depending on the business’s profitability.
- Around 50-75% of profits typically go to the exiting vendor during the payment period. This leaves a buffer for trading downturns, and hopefully, allows for some profit sharing with staff along the way.
- If the business stops trading within four years of sale, you’ll lose the Capital Gains Tax (CGT) perks – meaning any sales proceeds you did get become taxable.
The reality
The best type of valuation is a fair, achievable one that secures your legacy and actually gets paid. A credible valuation doesn’t mean “selling cheap” – it means setting the deal up to work. For your team, for the future of the business, and for your own peace of mind.
Thinking of transitioning?