Every Employee Ownership Trust sale is different. The cost of transitioning to an EOT depends on a range of factors, including the size and structure of your business, your plans for exit, and the level of support needed. A successful transition to employee ownership can often mean different costs are involved throughout the process.
Go EO focuses on the sale transaction itself – the technical, legal, and accounting work required for an EOT sale. We work closely with your professional business adviser to scope the work, agree responsibilities, and ensure costs and roles are clear.
Factors affecting our fees
Some EOT sales are relatively straightforward. Others involve more complexities, such as:
- Multiple shareholders
- Existing share options or different share classes
- Bespoke articles of association
- Direct shareholdings retained outside the EOT
- EMI or other share options
More complex situations require additional technical work, which can affect our costs.
The level of support you need also matters. Some founders are happy for their adviser to take the lead, with us providing specialist technical delivery in the background. Others prefer more direct support and guidance from Go EO throughout the process. Your adviser will help shape the right approach for you.
More than a legal and accounting process
An EOT is not a one-size-fits-all transition. While the technical elements of an EOT sale can often be standardised and follow proven best practice, founders’ experiences are rarely the same.
This is where your adviser plays a vital role. Beyond the nuts and bolts of the transaction, they support you through the wider personal and practical aspects of the transition, including:
- Readiness to sell. Helping you assess whether an EOT is the right option, and whether the timing is right for you.
- Leadership and succession. Planning when and how leadership responsibility transfers after the sale.
- Communication. Guiding how and when to talk to employees, customers, and other stakeholders about the change.
- Employee engagement. Helping the team understand what employee ownership means in practice.
Every founder’s journey is different, and your adviser helps ensure the transition works not just on paper, but in practice. Your adviser is in the right place to discuss the all the details with you, establish what you need, and put together the costings.
Other costs to be aware of
As well as professional fees, there are other transaction-related costs to factor in, such as stamp duty and Capital Gains Tax (CGT). We’ve created a helpful guide and various calculators to help you understand the wider costs associated with an EOT sale, and what the numbers might look like for you.