EOT as a strategic exit option

Thursday 6 March 2025 | 1:00 PM - 2:00 PM GMT

Are you a founder of a small to medium sized business considering options for succession planning? If so, an EOT might be the right route for you.

In recent years, many entrepreneurs seeking an exit have chosen Employee Ownership Trusts (EOTs) over open market sales. This rising trend is fuelled by the relative simplicity of the process including execution certainty, the productivity gains for the business and attractive tax benefits for both sellers and employees, resulting in a continuing surge in EOT formations EOT formations nearly doubling in 2022.

For UK business owners, transferring shares to an EOT allows them to receive full market value without paying Capital Gains Tax, while employees can benefit from tax-free annual bonuses. If you’re considering an EOT, we recommend learning about the process and benefits to see if it’s the right fit for you.

Samantha Lenox, Head of Employee Share Schemes and Ian Fraser, Employee Share Schemes Partner, both have over 55 years’ combined experience supporting businesses with their employee and management incentive arrangements, including transitioning to the EOT model, and will cover key topics, including:

• Key benefits of an EOT – why choose an EOT?
• Benefits and disadvantages compared to other routes – trade sale vs. EOT?
• Steps to implementation – what to expect.
• Important considerations – what do you need to think about?
• Budget impacts – what’s changed?

This webinar will help founders and entrepreneurs of SMEs understand the benefits of Employee Ownership Trusts for your business and employees. There will also be a chance for Q&A at the end of the session.

Sign up below to attend our free webinar.