This year marks a decade since the introduction of legislation to encourage wider employee engagement in businesses via Employee Ownership Trusts (‘EOT’).
The EOT rules enable owners to transfer their business to a trust which is managed for the benefit of the employees. In the right circumstances, this is a great way to increase employee involvement, and to drive productivity and profitability. It also comes with attractive tax reliefs for both the original owners and employees.
Join us for an insightful event hosted by our Head of Tax Advisory, Liz Gallagher. With a wealth of experience and having advised on a number of high profile EOTs, Liz will introduce the concept of EOTs and share her expertise.
The event will also provide an opportunity to hear from Mike Ward, Founder at Instinct Resourcing, and Di Barker, Finance Director at MC2 Manchester. Both have experienced the transition to an EOT and will share their insights. Mike and Di will be joined by Paul Johnson from renowned regional law firm Ward Hadaway, and Sam Roden from HSBC. Paul and Sam will also share their experiences and describe how they have supported companies during the EOT transition.
In particular, the team will cover the following topics:
- Succession Planning: Employee ownership through an EOT offers a tax-efficient solution for business succession. Selling to an EOT allows shareholders to do so at full market value, subject to an independent valuation and transfer of control to the EOT.
- Financial Structure: The sale to an EOT is often structured with an initial cash payment, contingent on available distributable reserves, and deferred consideration, which is repaid over time from future profits. This arrangement ensures that original shareholders maintain a vested interest in the company’s ongoing success.
- Business Continuity: Transferring ownership to an EOT can preserve business continuity without necessitating a sale to a third party, a factor that often motivates employees. This approach can also attract and retain staff, as it highlights the company’s commitment to its workforce.
If you’d like to attend, please register using the button on the left-hand side.
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