Article
22 January 2026
Recent changes to Employee Ownership Trust (EOT) business sales
Employee Ownership Trusts (EOTs) are an increasingly common sight on the UK business landscape.
Selling to an EOT is an attractive option for many business owners, particularly where owners are concerned for their staff post-sale, or where finding a third-party buyer may not be a practical solution.
EOT transactions suit businesses which are well-established, with long-serving staff who value their roles and are valued in their roles. Depending on the number of directors and shareholders in your business, typically, there is a requirement for at least 15 full-time staff members.
EOTs work best for businesses which are profitable and cash-generative, as in most instances, future profits are required for paying out the owners in full. Therefore, they are also suitable when owners are keen to retain a level of involvement in their business moving forward.
An EOT will not suit every business and every business owner. Our expert team is on hand to guide you as to whether such a transaction would be beneficial to you and your business, or whether another route would be more suitable.
If you would like more information, please contact our EOT specialists:
 Adrian Howells |  Holly Bedford |
What is an EOT?
An EOT holds shares in the business for the benefit of your employees.
Benefits to business owners of selling to an EOT
Confidential and more straightforward sales process, which is tax-free.
Benefits to employees
Employees benefit from indirect ownership of the business.
Back
A free guide to employee ownership trusts
We have created a free and practical guide to provide you with an overview of how EOTs operate in practice, highlighting the realities of implementing this model in your business. Whether you are a business owner or an advisor, our expert insight, robust advice, and balanced viewpoint will ensure you have a well-rounded understanding of how EOTs can be utilised as a straightforward option to realise value from your business.
The guide covers many key areas business owners ask us about, including:
- Advantages and disadvantages of using EOTs
- The transaction process
- Pitfalls of a traditional exit route for business owners
