Selling your business to an EOT creates a number of significant benefits for your employees, which can lead to improved staff retention and greater business resilience.

The employees of EOT owned businesses are eligible for participate in the ultimate economic benefits arising from the shares in the business.

Your staff will not pay anything for this benefit; once the agreed sale price has been paid in full, the staff will then benefit from all future profits, whether paid out as dividends profit share, or realised by a secondary sale of the company shares, as directed by the Trust.

As soon as the company is EOT owned, special bonuses can be paid to the employees which are tax-free up to £3,600 pa each.

With these substantive benefits, it is clear to see why staff satisfaction and retention tends to substantially increase.

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 business owners of selling a business to an EOT

Confidential and more straightforward sales process, which is tax-free.

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
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