In this broadcast, Kevin Uphill and Sue Lawrence discuss how to build the right team for Employee Ownership sales, how to understand the financial model and how to prepare for the process. They also share the 0% tax and HMRC clearance and why more companies are using the approach post-COVID.
Employee Ownership Trusts
In the last two years, the number of UK Employee Ownership Trusts (EOT) businesses has doubled. This is because, if structured correctly, they can match the value of trade sales but with a capital gains tax of 0% to the selling shareholders. They can also create a more productive employee-driven business. Furthermore, a sale can be immediate, as there are no confidentiality or auction process issues.
Despite the attractions, many are put off, or simply do not understand, the approach. The objections are usually it is complicated, my staff could not run the business, or I will get a higher value if I opt for a trade sale. Yet, in the vast majority of cases, these objections are unfounded.
We will examine these in the accompanying article – “Employee Ownership Trust: Selling Your Business To An EOT” – which you can find here. Otherwise, you can view the webinar below.
We have launched our ‘Lead Ahead’ Webinar Series in line with our weekly articles. Join our ‘Scale Up’ webinar on 17th September 2020, 9.30 to 10.30 (BST).
For information on other webinars within the series, visit our Webinars & Events page.
Avondale is launching a Scale to Sell Board Group – we also offer one to one consultation to help you understand current valuations, value builder options or the best exit strategy options.
For an exploratory discussion without obligation, please contact us on +44 (0)1737 240888 or email av@avondale.co.uk.