7 minutes read Achieving competitive advantage in business is synonymous with outperforming competitors. This advantageous position is founded on four key pillars: efficiency, quality, innovation, and customer responsiveness. By excelling in these areas, a company differentiates its offerings, delivers enhanced value to customers, and potentially operates at a lower cost base, thereby increasing market share and…
9 minutes read A sale of your business to all the employees via an Employee Ownership Trust (EOT) is a relatively simple, advisor and vendor-driven exit strategy and therefore more immediate than a trade sale. What’s more, to encourage such sales, they are currently subject to 0% Capital Gains Tax, provided they meet the qualifying rules.…
In our live panel discussion on Employee Ownership Trusts (EOT) featuring Kevin Uphill (Chairman of Avondale), Mike Dinnell (Director of Business Development at Thincats), and Fran Lord (Head of Communications and Policy at Employee Ownership Association), we explored the competitive advantages of Employee Ownership Trusts (EOT), typical structures, valuations, pros and cons and funding options.…
4.5 minutes read Employee Ownership Trusts (EOTs) have become quite popular among business owners to sell their businesses. In the UK alone, there are now over 1,300 EOTs, and they received more than 400 applications last year. While the 0% tax break on Capital Gains is a significant advantage, there are other reasons why Employee…
4 minutes read EOT – Employee Ownership Trust Employee Ownership Trusts (“EOTs”) are becoming an increasingly popular way for business owners to transfer ownership of their companies to their employees. The UK Government introduced several tax incentives for EOTs in 2014, including a 0% Capital Gains Tax (“CGT”) rate on the sale of shares to an…
3 minutes read Mergers and acquisitions (“M&A”) are increasingly common however, the increasing frequency of M&A deals has raised concerns regarding the tax implications. There is a growing debate about whether Capital Gains Tax (“CGT”) rates should be increased for M&A transactions. Proponents of the increase argue that higher CGT rates will generate more revenue for…
4 minutes read Why do some advisors insist on using all the legal terms when discussing Employee Ownership Trusts structures (“EOTs”)? Are they wanting to make these transactions seem complex and expensive? Why do they only seek owners who are ‘altruistic’ or team-driven? This approach simply puts people off Employee Ownership Trusts and yet, with nearly…
10 minutes read Selling a business through an Employee Ownership Trust (EOT) is an excellent exit strategy for those shareholders who want to preserve the legacy of their company whilst realising wealth at 0% Capital Gains Tax. It can also be a soft exit for sellers who want to gradually relinquish control – but many, however, do not explore an EOT…
7.5 minute read Trade, Family Office, Private Equity, or Management Buy-Outs (MBOs) are all recognised exit options for business owners – each with its own pros and cons. However, we are increasingly seeing a changing trend with shareholders now opting for Employee Ownership Trust structures (EOTs) for sale and succession because they offer significant benefits over…
An exit strategy is a plan to create succession or liquidate the value of shares. A successful exit will focus on profitable value and ideally realise the goodwill inherent in a business; that being the customer loyalty that results in both current and future profitable revenue. Some corporates will also divest non-core assets to realise…