Go EO for Business Brokers

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

An Employee Ownership Trust could be a suitable exit plan for them.

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

– risk they won’t get paid in full if business fails soon after transfer

– sales price may not be as high as could be secured in a 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 less likely to lose jobs than with a trade sale.

Plus the founder:

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

– can retain minority shareholding (if they wish)

– won’t pay CGT on sales proceeds (provided criteria met).

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