A smooth sale – from start to finish
At Go EO, we like to make life easier, so the entire transition to an EOT is completed in-house. We’ve created a streamlined, step-by-step process that means a faster and more straightforward sale to an EOT. What this translates to is smooth transitions that take just two to three months.
While we make the process feel simple on your side, it’s worth remembering that this is still a major transaction – with plenty of complex work happening behind the scenes.
Of course, before this process starts, you need to decide whether an EOT is right for you and your business. If this is all new to you, you can read our EOT 101 guide or find out if you're “EOT ready” with our EOT explorer.
Below is a breakdown of the different stages in our transition process.
The formalities step
You officially bring Go EO onboard, and share the essential info we need.
Your to-do list
- Sign our engagement letter
- Pay the first half of our fee
- Send us your company info and ID docs
Our role
We make sure you comply with all the regulatory requirements and ensure we’re all on same page.
The valuation and payment plan step
Our accountant Chris, runs the numbers and puts together a sensible valuation and realistic payment plan for the sale of your business to the EOT.
Your existing accountant may well be capable of valuing your business, but where they've been advising you/the company for years, it's hard to argue they're genuinely independent. We will be.
Your to-do list
- Share your accounting data
- Answer a few questions about your finances
Our role
Number crunching to establish a formal independent valuation and suggesting a preliminary payment plan.
The tax step
The proposed sale is run past HMRC (under section 748 CTA 2010 and section 701 ITA 2007) to request tax clearance. All being well, HMRC put in writing that they won’t challenge the transaction as non-commercial aggressive tax avoidance. It’s basically them saying, “Yes, the deal looks acceptable to us.” It can take them 30 days to respond, but we'll be pressing ahead with the next few steps whilst we wait.
Our role
We draft and submit the tax clearance letter and respond to any queries if/when received.
Check-in call
Video call with your leadership team to answer questions and talk about trustees.
The trustees step
Things keep moving with the set up of your EOT trustee company. As part of our standard package, three human “trustees” are recommended – one founder, one employee, and one independent person. Want more? It's possible, but you’ll pay a little extra to cover the admin.
Your to-do list
- Establish who your initial trustees will be
- Provide personal details of the chosen trustees
Our role
We manage the incorporation of the corporate trustee with Companies House and make sure everything’s on track.
The sharing info step
The work done up to now will trigger a few different official letters and emails – some go to you, some come to us.
Your to-do list
- Send us the trustee company authentication code from Companies House
- Send us the trustee company unique taxpayer reference from HMRC
Our role
We’ll share the HMRC tax clearance letter with you, which has usually arrived by this point.
The formal documents step
As you’d expect from something this significant, there’ll be quite a few heavy-weight documents to read through. We’ll help guide you through these, but even then it’s probably a good idea to clear some time in your calendar to sit down and wade through them all!
Your to-do list
- Read through the formal documents
- Ask questions if anything is unclear
- Sign when you’re happy
Our role
Our tailored documents have been drafted by legal experts with both EOT and more general merger & acquisition experience. We’ll walk you through them in plain English, ensuring you understand all the key provisions.
Check-in call
Video call to discuss the documents.
The e-signing step
A few days before the planned completion date, everyone involved will e-sign the documents. Once everyone’s e-signed to confirm their agreement, and formalise the deal, there’s no going back!
Your to-do list
- All key parties e-sign sale documents
Our role
To make everything as easy and clear for you as possible, we co-ordinate the e-signatures using smart e-signing software. It makes sure all the right boxes are in the right places – keeping things simple and avoiding any missed signatures.
The sale completion step
Everything’s agreed, the ink (well, digital ink) is dry, and you’re ready for the hand-over. On the agreed date, your business officially becomes employee owned.
Your to-do list
- Mark the big occasion
- Celebrate with your employees
- Take a moment to think about the momentous step you’ve taken to secure your business’s future
Our role
Nothing... this is your moment!
The formal post-completion step
It’s official. Your business is now employee owned! There will be a few significant payments to make, and administrative updating to do. Don’t worry, we’ll do most of the latter!
Your to-do list
- Pay the remainder of our fee
- Pay the stamp duty
- Pay any initial sum agreed to the vendors
Our role
We handle a series of submissions, including stamp duty filing, PSC updates, and uploading your revised articles (for your original company and the new EOT).
Check-in call
Video call to see how it’s all going and answer questions that have cropped up post-sale.