Selling your business to an EOT comes with a number of important benefits, not the least of which is a smoother and less stressful process and a tax-free sale.

By selling your business to an EOT you benefit from a “readymade” buyer, there is no requirement to trawl the market meeting endless buyers and “tyre-kickers”. There is no risk of losing confidential information to competitors, no price chipping, and no extensive due diligence reviews. The warranties that you need to provide as the seller are usually far more basic. Also, the sale price can be full market value.

As the seller, you are able to be far more in control of the sales process. You can select your own timescale; there are fewer advisors; and little to no pressure from the buyer. This makes for a much less stress inducing sale than a traditional process. Typically, your exit will also be cheaper than the more familiar routes.

The showstopping benefit to business owners is that if structured and executed correctly, the sale will be tax-free; meaning there is no Capital Gains Tax for you to pay. This is a significant factor when considering overall value.

If you would like more information, please contact our EOT specialists:

Photo of Adrian HowellsAdrian Howells
Managing Director
adrian.howells@quantuma.com
Photo of Holly BedfordHolly Bedford
Managing Director
holly.bedford@quantuma.com

Benefits to employees

Employees benefit from indirect ownership of the business.

What is an EOT?

An EOT holds shares in the business for the benefit of your employees.

Can I sell my business to an EOT?

Most owner-managed businesses would suit an EOT sale.

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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
Complete the form to receive a copy of the guide
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