Go EO for Business Brokers

Have you got a client, owner wants to sell, but struggling to find a suitable buyer?

Could an Employee Ownership Trust be a suitable exit plan?

Key things company needs:

– senior team capable and willing to run the business

– to meet the “participator rule”. Essentially at least 2.5 employees for every shareholder

Founder must also be aware:

– they’ll be paid out over a longer time than a trade sale

– may not get paid in full if business fails soon after transfer

– sales price may be lower than trade sale

On the plus side:

– minimal intrusive due diligence

– minimal risk of buyer pulling out

– timeline to suit the business/owner

– business brand/independence remains intact

– staff more likely to retain jobs

Plus the founder:

– can have a lot of say in their role post sale

– can retain minority shareholding (if they wish)

– zero CGT on sales proceeds (if criteria met).

Get in touch to discuss selling these businesses to an EOT.