Employee Ownership Trusts: Are EOTs Still a Good Exit Strategy? | Five Years On

Employee Ownership Trusts (EOTs) have become an increasingly popular option for business owners considering succession and exit planning. But following recent changes to the tax regime, are EOTs still a good option? In this video, we reflect on more than five years of experience advising on Employee Ownership Trust transactions and explore why employee ownership remains a highly relevant succession planning and business exit strategy. Having advised on around 20 EOT transactions, supported shareholders through the sale process, acted as independent trustees and worked with employee-owned businesses after completion, we share what we've learned about the long-term impact of employee ownership. We explore: Why business owners choose an Employee Ownership Trust The benefits of control and certainty during a business sale How EOT valuations work and the importance of fairness Preserving business culture and legacy Rewarding employees through employee ownership What happens after an EOT transaction How employee-owned businesses can evolve and grow The impact of recent EOT tax changes Why Employee Ownership Trusts remain an important option for succession planning While the tax landscape surrounding Employee Ownership Trusts has changed, the fundamental benefits of employee ownership remain strong. For the right business, an EOT can provide a powerful route to ownership transition while protecting legacy, engaging employees and supporting the next generation of leadership. If you're considering selling your business and would like to discuss whether an Employee Ownership Trust could be the right option for you, get in touch with our team at hentons.com.