An Employee Ownership Trust (EOT) is a unique type of business structure that gives the employees of a company a majority stake in the ownership of that company, as a group.
Via a committee, the Employee Trust has opportunities to become involved in the decision making of the business, helping to develop its future strategy and direction. There are also key criteria that will need to be satisfied to ensure the EOT can be set up.
Interested in how you could implement an EOT in your business?
Through this type of sale employees evolve from workers into owners of a majority stake in that company through the Employee Trust, encouraging commitment and a greater drive for innovation.
Employee-owned businesses often have a positive culture and committed employees.
This option is often seen as a ‘friendly transaction’, but as with every other business, they operate in highly competitive sectors and must see financial success to survive.
There are a number of benefits to undertaking an EOT, including:
Find out how the GS Verde Group can support your business
All the support you need, under one roof
A business owner will need both financial and legal support to complete an EOT. At the GS Verde Group, we can help with both.
Financial modelling, business valuation, legal structure and shareholder agreements will all be required. As a Group, we are able to support business owners through the entire EOT process and we were delighted to recently do just this for Paramount Interiors.
To find out if an EOT is the right route for you and your business, contact us.
Temple Homes Property Limited, a property management company based in Bristol, has successfully been acquired by estate agency Bristol Property Centre in a deal supported by the GS Verde Group.
It doesn’t matter which exit route you decide to take to sell your business, you want to maximise the value of your business prior to selling.
GS Verde Group is pleased to have advised on the sale of a renowned translation services provider.
The GS Verde Group recently worked with Paramount Interiors, providing transaction support for their EOT undertaking.
From the owner:
“Paramount Interiors have many long-standing staff members, and the people here are at the heart of all that we do. I am absolutely delighted with the opportunity to reward our talented team with a stake in the business for the outstanding contribution and commitment they have shown over the many years.”
Richard Jones, Managing Director
From the employee:
"Richard’s decision to sell his majority shareholding reflects not only how much he values our staff but also the respect they have for him in terms of how committed they all are.”
Helen Bartlett, EOT Board Member
