Employee Ownership Trusts (EOTs) have become an increasingly attractive option for business owners considering succession planning and exit strategies. In this video, we explore how an EOT sale compares with traditional trade and private equity transactions, examining the commercial, tax and practical factors that business owners should consider when planning for the future of their business.
The discussion explains how an EOT can provide a tax-efficient route to sale while enabling owners to realise fair market value, retain greater control over the transaction process and achieve a higher degree of certainty than can often be found in third-party sales. The video also highlights the potential benefits of employee ownership, including preserving a company’s culture and legacy, providing long-term stability and allowing founders to transition away from the business on their own terms.
Garry Karch examines the key legal and tax requirements for qualifying EOT transactions, recent changes to Business Asset Disposal Relief, transaction structures, funding arrangements and the role of vendor financing. They also compare the net proceeds available under different sale scenarios, demonstrating why the highest headline valuation does not always result in the best financial outcome for shareholders.
Whether you are considering a trade sale, private equity investment or an employee ownership model, this provides a practical overview of how EOTs work and why they should be considered as part of any business succession planning strategy.
Event Speaker
Garry Karch
Head of EOT Services
