Helping owners exit at 0% tax and empowering employees

Trade sales can be a very appealing exit strategy, but they don’t suit every business and they are not always immediate. A management buy-out might be considered, but this can create tension in the senior team whereas ‘Employee Ownership’ (EOT) is an exit strategy that puts you in control.

Avondale have helped many businesses to become employee owned, sometimes with valuations exceeding trade offers, and importantly driving an immediate timeline and due diligence friendly environment. Since 2014, the tax breaks (0% Capital Gains Tax) for selling your business to an Employee Ownership Trust have been significant, making it a very appealing option over the 20% on sale of shares.

This innovative form of succession and ultimate exit requires careful planning.

Avondale are trusted EOT Specialists that can advise you on whether this type of transaction is right for you, and then end-to-end help you implement – from finance and tax clearance to legal and transition aspects. We also work with a team of specialist trustees taking care of the ongoing administration. Either majority or full ownership sits with the entire workforce, not just a select few, as it would in a Management Buy Out. Benefits must be allocated on a non-discriminatory basis, although a qualifying service period might be required.

Selling your business to an EOT can be a great thank-you to your team, but also to the economy – and can also better protect your legacy, as Employee Owned businesses tend to be productive, purposeful and sustainable on a long-term basis. Employee ownership is the fastest growing form of business in the UK, with 400; John Lewis is the most famous of course, so you would be in good company. If you are looking for a highly accessible, tax effective, flexible, friendly and immediate succession plan and are intrigued please call us in confidence to discuss your options.

Avondale: succession planning and implementation at optimal value

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