Have you got a client, owner wants to sell, but struggling to find a suitable buyer?
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.
Want to find out more about the key people behind Go EO?