A rewarding exit strategy that motivates employees and is 100% tax-free

Avondale can help structure Employee Ownership Trusts (EOT). These are typically vendor-led sales, structured to realise the value of the business over time and simultaneously reward and empower the team. We believe that EOTs should be both commercial in terms of the return to the seller shareholders, and create completely purposeful, employee-driven and strategically advantaged businesses on completion.

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The approach

Many owners are now choosing to sell their businesses to their employees via trusts. The process can be vendor-led, thereby not requiring employees to drive it. Valuations are a commercial discussion with no 3rd party involvement.

Due diligence is light and the EOT can be funded over time, enabling sellers to both reward and hand over to the team. There is also a 100% tax-free aspect, which is highly attractive.

Immediate, light due diligence and 100% tax-free

Purposeful sales

We believe that employee ownership can really help make the UK more productive and create more purposeful businesses. EOTs can both reward the shareholders and motivate employees.

Avondale do all the lifting from viability, structure, valuation, clearance and delivering trustees. This is an exceptional business model which is incredibly flexible to suit you.

Proven, we deliver simply the best EOT strategy and structure

Delivering value

Valuations are at the usual multiples, subject to HMRC clearance. EOTs are encouraged as the Government actively seeks to promote employee-owned businesses with their proven increase in productivity.

Funding is straight forward, usually through reserves, 3rd party debt and vendor loans. Avondale arrange the funding structure and run the sale from start to finish.

Valuations at the usual multiples and straight forward funding

Helping people

Sellers can exit and reward employees gradually, securing commercial terms and saving tax. From the start, all employees get to be stakeholders and can have a reward of a £3,600 tax-free bonus per annum.

Typically, once the seller pay-out is achieved, key managers end up in the upper pay grade for their sector. All this, in turn, means greater staff retention and better quality customer service.

Retain and reward employees with up to £3,600 tax-free bonus per annum

Maximise your business sale through an employee ownership sale. Book a meeting or call us in confidence on +44 (0)20 7788 8250.

Read our Quick Guide to Employee Ownership Sales

This quick guide to employee ownership sales is written to address the key questions around Employee Ownership Trusts, such as the sale approach, valuation, funding and the future of employees. READ HERE

Download our in-depth Employee Ownership Trusts Guide

This guide to employee ownership is written to help business owners and management teams better understand how an EOT may help shareholders create succession and secure shareholder value, whilst creating the legacy of a sustainable business working for the benefit of all staff members. DOWNLOAD HERE

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