How can we help?
To access legal support from just £140 per hour arrange your no-obligation initial consultation to discuss your business requirements.
Transferring shares to employees via an employee ownership trust can be quicker than a sale to a third party, can help retain the company’s ethos and can bring significant tax advantages.
Explore how we can help you transfer shares to an EOT.
Our specialist equity incentive and corporate law solicitors can help your business by:
Advising on the tax advantages of selling shares to an EOT and the qualifying conditions for tax reliefs
Obtaining clearances in respect of the EOT from HMRC as required
Liaising with your accountants or other valuation advisers regarding the market value of the shares in your company and advising you on how to calculate the purchase price
Liaising with your existing shareholders, including any who don’t intend to sell to the EOT
Working with your employees to explain to them how the employee ownership trust will work, and how they can maximise the advantages of working in an employee-owned business.
Helping you decide how the sale will be funded, whether that’s paid over time out of profits or through some other funding arrangement
Advising on the choice of trustees for the EOT and establishing a corporate trustee if appropriat
Advising on employee representation at trustee level (and whether an employee council will be established)
Advising on and drafting share transfer documents to be signed by the trustee of the EOT and the selling shareholders (including a Share Purchase Agreement, disclosure letters and funding agreements as appropriate)
Advising on changes to the company’s management structure
Completing the share sale to the EOT.
Advising on any post-completion employee share schemes and equity incentive arrangements
We support a wide range of UK-based companies that are thinking of selling, either to a third party or to employees. If you feel that selling to an employee ownership trust would be a good option for you, or simply want to understand how they work, get in touch. It’s vital to take good legal advice at the appropriate stage in your formation of an EOT in order to avoid unexpected tax charges, to make sure the sale goes through without a hitch, that you have appropriate trustees in place, and that appropriate clearances are obtained from HMRC.
Research has shown that selling to an employee ownership trust improves both employee and company productivity. It also improves staff morale and can decrease absenteeism.
The risk of changes to the company’s ethos are reduced because there will be no third party taking over the running of the business.
Selling shares to an EOT can be a quicker and simpler transaction than selling shares to a third party.
Selling to an EOT can bring significant tax savings for selling shareholders.
Selling shareholders can retain some involvement in the business while profits are being generated to pay any deferred consideration.
We can assist you to understand the benefits and disadvantages of EOTs. Our equity incentive arrangements and corporate specialists have a wealth of experience in setting up and advising on EOT transactions and can provide selling shareholders with the support necessary to progress a transaction as smoothly and swiftly as possible.
Beyond that, we can also provide you with commercial legal advice across a broad range of services, ultimately offering you a fully integrated approach to all the legal support you may need, aligning with your objectives as your business develops. Plus, we have all been recruited from top UK law firms or from large businesses and have advised clients both as external advisors and as in-house corporate counsel.
Find out more about the team below:
Our three transparent pricing packages are designed to give you the widest possible access to high-quality legal advice, whatever the size and nature of your business:
Straightforward access to senior solicitors at a competitive rate.
An affordable solution for businesses needing one-off legal support. Receive ‘City’ partner-level expertise at a fraction of ‘City’ prices.
Have legal peace of mind for £209 per month with additional support from £140 per hour.
A monthly subscription legal support package specifically designed for start-ups and smaller businesses.
Providing you with priority access to a dedicated panel of highly experienced solicitors.
Fully account managed quarterly subscription service for businesses with more complex legal needs.
Please leave us your details and we’ll contact you to discuss your situation and legal requirements. There’s no charge for your initial consultation, and no-obligation to instruct us. We aim to respond to all messages received within 24 hours.
Our commercial lawyers are based in or close to major cities across the UK, providing expert legal advice to clients both locally and nationally.
We mainly work remotely, so we can work with you wherever you are. But we can arrange face-to-face meeting at our offices or a location of your choosing.