Sell your business onto your workforce with an employee ownership trust

8th April 2012

You’ve spent a lifetime building up your business and the thought on retirement of selling out to your business rivals may be unpalatable and selling to your own management team may not be feasible – there is an alternative. Allowing your staff, through an employee ownership trust, to take ownership through a phased transition allows the legacy that your have built up to be continued, whilst allowing you to take a back seat from your business through to your retirement. It also preserves business culture and employments and gives you a trade sale exit without the usual haggling and due diligence. Usually, you will have to defer receipt of sale consideration under this exit structure, trusting that future business profits will remain strong enough to generate sufficient cash flow to settle this debt.

Popular in the US, where 1 in 5 employees working in the private sector now own a stake in their employer businesses, this model is becoming increasingly popular in the UK. This model is attractive to the UK Government, with £50m annually put-a-side in tax breaks for companies, their owners and their employees. It has been found that revenue, productivity and ultimately profitability improves within these businesses.

Whitings corporate finance team can advise whether this employee ownership trust model is suitable for you, the tax implications for both you and your staff, and the financing and corporate requirements, to ensure the transition of ownership is handled effectively and efficiently.

Other items in Corporate Finance
Chris Ridgeon
9th June 2021 Acquisition Growth for Staycation Business

With the staycation in full-flow Whitings assisted an existing client in the purchase of a block of bespoke high end holiday cottages. We assisted with the due diligence, projections and structure of the deal and after acquisition the integration of this new venture into the existing business.

Ian Piper
1st June 2011 MBO Purchase of Niche Printing Support Services Business

When approached by the business general manager who had been given first refusal by the business owners to purchase the company, Whitings assisted him with transaction structuring, tax planning, raising finance and general deal support. The deal was structured with deferred consideration and bank debt, to be totally self funding over 3 years.  

Jason Jones
4th May 2020 Coronavirus Bounce Back Loan Scheme Now Open for Applications

Key features of the BBLS:   The scheme is a 100% government backed initiative for small businesses.   You can apply* for a loan between £2,000 and £50,000 (up to a maximum of 25% annual turnover), for 6 years.   No repayments required for the first 12 months, and you won’t pay any charges should…

Jonathan Moore
29th April 2019 New Home for Estate Agency

Whiting & Partners, The Corporate Finance Network’s representative firm in Suffolk, has successfully advised the shareholders of a Lettings & Estate Agency on their company sale.   Chris Kelly, Partner at Whiting & Partners within their Corporate Finance team, began by confidentially marketing the business to gauge interest within the market. The process generated a…

Jaimie King
5th April 2018 £1m Buyout of an Insurance Brokerage

  Whiting & Partners, The Corporate Finance Network’s representative firm in Suffolk, has successfully advised the management team of its £1m buyout of an insurance brokerage. The Whiting & Partners team, led by Chris Kelly, was approached by the management team after they had a potential opportunity to acquire the insurance brokerage from the founding…

Chris Ridgeon
6th February 2012 Sale of Pump Supplier Business

  Whiting & Partners, The Corporate Finance Network’s representative firm in Cambridgeshire, has successfully advised the shareholders of a pump supplier to a global competitor. The Whiting & Partners team, marketed the company for sale which led to a number of meetings and subsequent offers from a range of interested parties. The client, using the…