Employee Ownership Trusts: Read our client testimonials
21 October 2019
If you own a trading company, you can now sell some, or all, of your shares to an employee ownership trust (EOT) (subject to satisfying certain conditions) for full market value without incurring any capital gains tax liability in a way which also benefits your employees.
What is an EOT?
An EOT is a special form of employee benefit trust introduced by the Government in September 2014 in an attempt to encourage more shareholders to set up a corporate structure similar to the John Lewis model. The aim is to facilitate wider employee-ownership, albeit via an indirect holding.
Our team is the market leader in advising on EOT and employee-ownership and can provide you with free, practical and user-friendly advice on the advantages and disadvantages of selling your business to an EOT.
We have collected some recent testimonials from clients who have benefitted from selling their business to an EOT:
- "This is a really exciting move for Tonic Construction, enabling us to realise our ambition to become a trans-generational business, and guarantee intercompany loyalty and succession." The collective ownership by all the team, secures the future of the business and our core values, meaning we can long outlast the founders and senior team without the threat of a takeover or sale that could result in a dramatic change in business culture".
Tony Iles (Chairman and MD), Tonic Construction Ltd
- “Employee ownership offered a very attractive solution to a complex ownership succession problem, which had persisted for the business since our days listed on AIM almost a decade ago. The offer to acquire the entire issued share capital of the company by an EOT proved to be the perfect method of achieving this, by providing an exit for all shareholders on equal terms, financed out of future profits, whilst also securing a long-term ownership model, which enabled the business to continue on its chosen path under the same management.”
Paul Brock, CEO of BCS Consulting
- “The employee ownership trust is for all employees to benefit in the long-term future of the company, assuring all independence of the business”.
Stephen senior, Director, West & Senior Limited
- "We are very excited by this next step in the development of Erith Group, which should help maintain our unique ethos and keep us competitive for the next 50 years".
Steve Darsey, chief executive of Erith Group
- “Becoming employee owned reflects the people-first entrepreneurial spirit that has been the backbone of HJA since 1977. It provides continuity for our partners and staff, and therefore our clients. It is the perfect model for a firm like ours. I wanted to ensure that the firm could continue to grow in the same way as I intended when I founded it over 40 years ago. We have a fantastic team and we help people who may not always be able to access advice and redress. I see this as a way in which my vision can go forward and thrive into the future.”
Patrick Allen, Senior Partner, Hodge Jones & Allen LLP
- “This is an exciting day for everybody at Hodge Jones & Allen. Patrick has supported the firm for over 40 years and this move shows his commitment and love for the company he founded and a desire to support continued growth and investment into the firm. Creating the EOT was the best way of ensuring Patrick’s legacy and of safeguarding the firm whilst making sure that the ethos and values remain intact. Now we can better plan for the future and continue to grow and innovate for the benefit of all staff and clients.”
Vidisha Joshi, Managing Partner, Hodge Jones & Allen LLP
- “Just Recruitment has always been an organisation dedicated to placing people first, so this route of ownership seemed like a natural progression to us. Our organisation has experienced great success over the years due to our employees, and our move to employee ownership shows our gratitude to our employees for their service. Selling our organisation to another organisation would have caused us to lose our team ethos, so was not an attractive proposition. Employee ownership retains and strengthens organisational culture and will ensure that Just Recruitment is always part of the local community.”
Jenny Wrightson, managing director at Just Recruitment
- “Simply 10 out of 10 in all areas. We turned to BDO for advice because we trusted that they would be accurate, timely, pragmatic and responsive. They exceeded our very high expectations. Matthew was excellent technically and a pleasure to work with.”
Ben Tolley, Finance Director, Clarity Capital Partners Limited
- “I have recently worked with BDO and I only have high praise for them. They have navigated me through a complex shareholding structure with real expertise, a down-to-earth approach, a high level of flexibility, impressive responsiveness and a much-needed sense of humour. Couldn’t fault them.”
Caroline Kinsey, Chairman and owner of Kinsey PR Limited
- “It goes without saying that we are extremely pleased with the support we received from BDO generally throughout the past year. From our first meeting at your EOT seminar a year ago we have been expertly guided through the process of bringing about what turned out to be a complex and unique transaction. We were impressed by the expertise and support you provided to us throughout the project lifecycle. In an area as complex as this, where we are dependent on the soundness of the advice we receive, it was critical to build confidence and trust that your approach was sound and workable in our specific situation. This culminated in your support on the day of the transaction when you presented to our full board and answered an array of detailed and technical questions covering the tax consequences and pitfalls associated with ongoing governance in an EOT structure. Building confidence with the non-execs over the structure of the transaction and the on-going tax implications as well as explaining the mechanics of an EOT structure were critical to us gaining the support needed to get the deal away”.
Paul Brock, CEO of BCS Consulting
- “The team helped us roll out a new bonus deferral process. This included addressing complex and interlinked regulatory, governance, legal, accounting and taxation issues, as well as helping us document and communicate and cascade the whole process. Their assistance and advice was invaluable as a ‘one stop shop’ and ensured a quick and smooth implementation.”
Mike Chilton, Finance Director, Cenkos Securities plc
- “BDO have played an integral role in the establishment of the Employee Ownership Trust. I would like to thank them for their patience, flexibility and enthusiastic support to get this transaction over the line. They have been able to structure a funding package that suits our long term needs providing our dedicated workforce with security, continuity and greater say over the future direction of the business. We look forward to continuing the long standing partnership we have established over the years with BDO LLP.”
Stephen Senior, CEO of West & Senior Limited
- “We engaged Matthew/BDO to provide advice on a complex tax scenario. They assessed the challenges with us in an objective and insightful way so we understood through each step of the process what was happening and what needed to be done. When faced with such challenges, you want an advisor who can work with you and respond promptly to any issues as well as have a strong grasp of the potential solutions – BDO exceeded our high expectations.”
Andy Haynes, COO, Box Innovation Group
For help and advice on selling your business to an EOT please contact Matthew Emms.