Could Employee Ownership be the answer to your succession plans?
This year marks a decade since the introduction of legislation to encourage wider employee engagement in businesses via Employee Ownership Trusts (‘EOT’).
The EOT rules enable owners to transfer their business to a trust which is managed for the benefit of the employees. In the right circumstances, this is a great way to increase employee involvement, and to drive productivity and profitability. It also comes with attractive tax reliefs for both the original owners and employees.
- Succession Planning: Employee ownership through an EOT offers a tax-efficient solution for business succession. Selling to an EOT allows shareholders to do so at full market value, subject to an independent valuation and transfer of control to the EOT.
- Financial Structure: The sale to an EOT is often structured with an initial cash payment, contingent on available distributable reserves, and deferred consideration, which is repaid over time from future profits. This arrangement ensures that original shareholders maintain a vested interest in the company’s ongoing success.
If you’d like to attend, please register using the button below.
Book your place
Don’t miss out! Click below to register to attend this event
Related articles
The advantages of doing business in the Netherlands are vast and can significantly improve cashflow by avoiding the burden of import VAT on goods/services provided to other EU countries.
Read article
As a new government takes the reins, Janet Mui will provide a brief review of the world of investment in 2024, as well as what to expect for 2025.
Read article
E-commerce has transformed trading businesses, and more change is on the horizon. We’re hosting an exclusive lunch for key decision-makers to help them master the fundamentals to leverage new technologies.
Read article