Selling your business to an Employee Ownership Trust (EOT) or through another route doesn’t just involve accountants and lawyers. While the tax and legal work are essential, they are only part of the bigger picture. Many founders benefit from extra support to help with a variety of things associated with the transition.
None of the below are compulsory, but it’s worth considering whether you’re happy dealing with these internally, or would benefit from some external guidance.
Getting the communications right
You only get one chance to make a first impression. When you announce your exit and the move to employee ownership, staff and clients will have questions and emotions. Done well, communications can inspire confidence and pride. Done poorly, they can create uncertainty, rumours, and even departures. Professional communications support helps you craft the right message, plan the timing, and handle both internal and external audiences. Brand agencies like Salad specialise in messaging that reassures staff and presents the transition positively to the wider world.
Supporting leadership transition
Handing over the reins isn’t only about signing documents. It’s about shifting responsibility and power, which can be emotionally charged. Even if you have a great relationship with your senior managers, the transition can create awkwardness. Who makes which decisions, how quickly roles shift, and how the founder steps back. Experienced leadership coaches like Kate Mercer can provide frameworks and mediation to make sure everyone understands their new responsibilities and the process is handled smoothly.
Reviewing HR and contracts
Many founders don’t have formal employment contracts for themselves. It seemed unnecessary when it was your business. But once the company is employee owned, formalising your role makes sense. How many days will you work? What salary should you receive? Beyond your own position, it can also be a good moment to review staff contracts, policies, and benefits to ensure they reflect the new ownership structure. HR specialists such as Wellington HR can help identify gaps and bring everything up to date.
Establishing good governance
Employee ownership brings with it new governance requirements. Trustees must meet, decisions must be recorded, and staff should have a say in the direction of the business. Not all advisers provide governance support, but it can be invaluable in the early years. We’d recommend you choose an independent trustee with strong EOT experience. If not, it can be worth having a separate chair or adviser who knows EOTs well. This person can guide your trustee board, ensuring compliance, while also building a culture of engagement. Thinking about governance early helps avoid problems later.
Personal financial planning
While most providers will focus on the transaction, you may also want a financial adviser to help you work out a plan for the proceeds. Will the staged payments cover your retirement needs? Do you need to invest part of the proceeds differently? How do you balance taking cash now with leaving the company financially stable? Independent financial planners can provide a holistic view beyond the mechanics of the deal.
Building an ownership culture
Becoming an EOT doesn’t mean the staff will automatically feel like owners. Cultural work may be needed to embed the values of employee ownership. That might include workshops, training, or engagement surveys to help employees understand their role and responsibilities as co-owners. Investing in this side of things helps the transition succeed long after the legal paperwork is complete.
If you ask employees how they’d improve the business, and they respond “bigger salaries, more holiday, and a better coffee machine”, it’s clear they’re not yet thinking like owners!
Reviewing IT and operational systems
Some businesses discover at exit that their systems are too dependent on the founder. Passwords known only to them, processes undocumented, or financial systems that lack transparency. IT and systems consultants can help ensure the business is robust enough to operate smoothly without founder involvement. This isn’t always thought of as part of the exit process, but it can make a huge difference to staff confidence.
Emotional support for founders
Many founders find it emotional letting go of their business. One Go EO client said “it felt like selling a child”! Beyond the technicalities, many founders find it valuable to talk with peers who have been through the process, or even to work with coaches who focus on founder transition. The EOA can be a good source of events to meet other people in a similar situation. These conversations can help you prepare mentally, reduce anxiety, and embrace the next chapter with confidence.
Conclusion
The tax and legal work are essential to any EOT or succession plan, but they are only part of the story. Communications, leadership, HR, governance, financial planning, culture, and systems all play a role in whether the transition succeeds in practice. By thinking about additional support early, you can reduce risks, reassure staff and clients, and set your business up for long-term success under employee ownership.