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 cohesive sale to an EOT. What this translates to is smooth transitions that take just two to three months.
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 compare an EOT to other exit options.
Below is a breakdown of the different stages in our transition process.
Introductory call
Video call with founder(s) to talk through the process and answer your questions.
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 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 – to gain 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 clean to us.” It can take them 30 days to respond, but don’t worry, you'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 trustees are going to be
- Provide personal details of your chosen trustees
Our role
We contact HMRC to manage the incorporation of the trustee company 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 legal step
As you’d expect from something this significant, there’ll be a number of heavy-weight, legal documents to read through. You'll be guided by our legal expert. It's probably a good idea to clear some time in your calendar to sit down and read through them all.
Your to-do list
- Read through the legal documents
- Ask questions if anything is unclear
- Sign when you’re happy
Our role
Laura, our legal expert, reviews and shares all the necessary sales documents; walking you through them in plain English, discussing any tweaks you may want.
Check-in call
Video call with our legal expert 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
- Trading company directors e-sign sale documents
- Selling shareholders e-sign sale documents
- Trustees 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 place – 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! You receive your first payment. And our PR pro Fiona gets in touch to help you tell the world. She will craft and distribute a press release for you. This usually happens in the first week after completion day.
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.