Employee Ownership

Employee Ownership Sale

How Employee Ownership works

Employee ownership can be a way of selling your business or act as a route to a partial exit as part of business succession plans. To become an employee-owned organisation, an Employee Ownership Trust (EOT) is often set up, which means that employees acquire a majority stake in the business as a group. This is held on trust, with employees then becoming involved in decision-making, strategy and direction via a committee.

The potential economic benefits of employee ownership are recognised by the government. Employee ownership can improve performance, and employee-owned companies often have a positive culture, greater employee participation, and a committed workforce.

Interested in how you could implement an Employee Ownership structure in your business?

Contact us today to discuss your options

Why is employee ownership good for business?

Employee ownership business advantages

  • Greater employee engagement
  • 'Friendly' transaction compared to third party sales means simpler negotiation
  • Buyer is already present and understands the business leading to a faster and smoother transaction
  • Owners can claim full relief against Capital Gains Tax
  • Continuity for the business
  • Owner can plan a partial exit

Employee ownership company culture

  • Employee-centric structure empowers staff and business
  • Employees benefit from success of the company
  • Annual income tax-free bonus of up to £3,600 per employee available
  • Sense of security and continuity, compared to trade sale
  • Meaningful reward and recognition of employees
Employee Ownership Sale

Employee ownership examples

Case Study

Employees at South-west based printing company, Handy Brand, acquired a 51% majority stake in the company this year, with guidance and advice from GS Verde Group.

GS Verde supported throughout the entire process, with multidiscipline dealmakers working as one team to advise on company structure, carry out due diligence, raise funding, and draft new contracts and agreements.

"Without our excellent team members and loyal customers, Handy Brand's success would be nowhere near what it is today. That's why I decided to set up the Employee Ownership Trust scheme, to show my huge appreciation for their unwavering professionalism and empower their future development for many years to come." - Martyn Kilford, owner of Handy Brand

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Employee Ownership Sale

Key Benefits

There are a number of benefits to Employee Ownership, including:

  • Financial Security for Owner
  • Incentive for Employees
  • Various Tax Advantages
  • Streamlined business exit
  • Continuity for Business
  • Retain share interest (up to 49%)
  • Up to £3,600 tax-free employee bonus
  • Employee Engagement & Retention

Employee ownership sale considerations

As with any business transaction, how long employee ownership takes will depend on the parties involved and other factors, such as securing HMRC clearance for an EOT. Working as one team, GS Verde reduces the chance of delays and proactively works to address areas that could cause a deal to stall.

An EOT can suit a range of businesses, from high-profile corporations to family businesses considering their succession plans. As a Group, we understand your specific commercial needs and what is important to you, preventing unforeseen issues.

Why GS Verde?

All the support you need, under one roof

A business owner will need both specialist corporate finance and legal support to complete an EOT. At the GS Verde Group, we can help with both, while also advising on the tax efficiency planning and advantages available when you sell your business.

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.

To find out if an EOT is the right route for you and your business, contact us and discover how the GS Verde Group can support you

Discuss your options with us

Employee Ownership Sale
Employee Ownership Sale

Employee Ownership News

Established specialist engineering firm completes Employee Ownership transaction

Established specialist engineering firm completes Employee Ownership transaction

GS Verde Group has advised on an Employee Ownership Buyout of an established Fibre Optic Engineering business, with its staff becoming majority shareholders of the business.

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GS Verde Group Advises on Employee Ownership Transaction of Heating Solutions Provider

GS Verde Group Advises on Employee Ownership Transaction of Heating Solutions Provider

GS Verde Group have advised on an Employee Ownership buyout of a leading heating solutions provider, with its staff becoming majority shareholders of the business.

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Employee Ownership Deal for Escape 100 Listed Business

Employee Ownership Deal for Escape 100 Listed Business

Abergavenny based Miller Research, which undertakes research, consultancy, and evaluation work across a range of sectors, has completed an Employee Ownership sale, advised by The GS Verde Group.

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Other Types of Sale