An Employee Ownership Trust, allows you to sell your business to your staff, without them having to invest any money into the business; and it is the only way you can take the sale (of your business) proceeds tax free (no capital gains tax or income tax is applicable for qualifying companies). With the recent changes in entrepreneurs tax relief, an EOT provides an excellent solution for both the current entrepreneur, and the security of the business.
In completing an EOT, the business passes to the current staff, ensuring that the business is owned by a team of people who are committed to its values and its success. Indeed, the Employee Ownership Association suggests that the top 50 employee owned businesses in the UK see a 25.5%* increase in EBITDA following moving to an employee ownership structure
Ensuring you transition the business to its new ownership (your staff) requires a skilled team. At fds we support your entire journey, from a robust valuation of the business, all of your tax and legal needs to conduct the sale and support the staff as they take on their new role as owners through an integrated internal communication campaign.