Selling Your Business to an Employee Ownership Trust (EOT)
With the recent increase in Capital Gains Tax (CGT) announced in the Budget, more business owners are exploring alternatives to traditional sales structures. Selling your business to an Employee Ownership Trust (EOT) is emerging as an attractive option, particularly because it can allow for a tax-free transfer of ownership (0% CGT) under qualifying conditions.
This method enables business owners to reward and empower their employees by transferring ownership to a trust that holds the company for their benefit While not suitable for every scenario, an EOT sale is especially appealing for owners who prioritise their employees' welfare and the continuity of the business over immediate external profits.
As CGT rates rise, the EOT structure is likely to gain popularity among entrepreneurs seeking a tax-efficient, values-driven exit strategy. However, it is essential to understand the eligibility requirements, financial implications, and operational adjustments before pursuing this route.
Our panel will give a non-bias balanced view with pros and cons of this type of transaction.
Agenda:
9.55am - 5 minutes Q&A/depart 10.00am
About the Speakers:
Jeremy leads Cole Associates Corporate Finance (www.cole-group.co.uk), one of Manchester’s longest-established corporate finance ‘boutiques’. Cole Associates advise clients on acquisitions, management buy-outs and buy-ins, company sales and raising finance for growth. Jeremy was previously with PWC, including 3 years in the States.
Mairead is a senior associate in the corporate team at Brabners LLP. Brabners is a leading independent law firm that helps private, public, and third-sector organisations, as well as private individuals, to achieve their goals. Brabners are a leader in employee ownership, having been awarded Specialist Adviser status by the Employee Ownership Association.
Mairead is an experienced corporate lawyer, advising on mergers and acquisitions, company restructures, and exit strategies, including management buy-outs and employee ownership trusts. She also advises start-up and scale-up businesses that are looking to grow.
Mairead has a niche specialism in the EO sector and has played a key role in developing Brabners’ EO reputation and client base who, as a firm, completed its 50th EO transaction last year. Mairead has supported many businesses in their transition to employee ownership, including Barnfield Group, Optimum RX Group and Total Recruitment Group.
Richard Gahagan is the CEO and co-Founder of We Are Adam. Established in 2006, We Are Adam specialise in resourcing and recruiting talent across C-Suite, HR, and Digital Marketing, both in the UK and Europe, for businesses that are facing challenges with growth, hiring, and people management.
During his time at the helm of We Are Adam, Richard has aided businesses of all types – from small start-ups to global giants – plan, shape, and execute bespoke hiring strategies, alongside helping them understand the importance of culture, employer brand, and retention.
At the start of 2023, Richard proudly led the business into Employee Ownership, helping secure the long-term future of We Are Adam, its employees, and its clients and candidates.
Terry Moore is a Partner in the Corporate team at Myerson Solicitors, specialising in succession planning and Employee Ownership Trusts (EOTs). With extensive experience advising professional services firms and SMEs, Terry is recognised as a leading expert in creating EOT structures for tax-efficient business exits. In 2024, Terry successfully led Myerson’s own transition to a 100% employee-owned law firm, making it one of the largest of its kind in the UK. Terry’s in-depth understanding of EOTs, from conception to completion, ensures tailored advice for business owners considering employee ownership.
Interested In The Event?
If you’re interested in attending, you can book online here.
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