Services / Transitioning to employee ownership

Transitioning to employee ownership

For owners weighing up succession. We help you decide whether employee ownership is the right answer — and if it is, we manage the whole transition.

The decision

Succession first. Structure second.

An Employee Ownership Trust is not a goal. It is one possible answer to a harder question: what should happen to your business when you step back?

So that is where we start — with your commercial objectives, not with a structure. What do you want for the business, for your people, and for yourself? What does the business need to be worth to you, and by when? How involved do you want to remain? Only once those answers are clear does it make sense to compare employee ownership against your alternatives: a trade sale, a management buyout, family succession, or simply carrying on.

If employee ownership is not the best fit, we will tell you — early, before you have spent much money finding out.

What the work involves

From first conversation to completion

Every transaction is different, but the shape is broadly this. We project-manage the whole of it, so you are never coordinating advisers yourself.

01 — Feasibility

An honest assessment

We test whether the business can support the transaction: profitability, cash generation, leadership beneath the owner, and the realism of the price. This stage often costs the least and matters the most.

02 — Structure & valuation

Designing the transaction

The shape of the trust, the percentage sold, the valuation basis, and how consideration is paid — upfront and deferred. A structure that works on paper but strains the business is not a structure that works.

03 — Funding

Paying for it sensibly

Most EOT purchases are funded from the company's future profits, sometimes supplemented by external debt. We model what the business can genuinely afford, and arrange external funding where it helps.

04 — Tax

Reliefs and clearances

A qualifying sale to an EOT benefits from a blended capital gains tax rate of 12% — half the standard rate — and employees can receive income-tax-free bonuses of up to £3,600 a year. We handle the qualifying conditions and HMRC clearances that make this stand up.

05 — Governance

Designing what comes after

The trustee board, the company board, the trust deed and the employee voice — designed together, so the ownership works in practice and not just in the documents.

06 — Implementation

Documents, completion, communication

We coordinate the legal documentation — working alongside regulated law firms where reserved legal work is required — and help you explain the change to your employees in a way that lands well.

Afterwards

We do not disappear at completion

The first year of employee ownership sets the tone for the next twenty. Many clients keep us involved after the transaction — advising trustee boards, supporting the first annual cycle of governance, or simply being on the end of the phone when an unfamiliar question arrives.

Some appoint us as independent trustees. Others need nothing further at all. Both are fine; the point is that continuing support is there if you want it, from the people who designed your structure.

Before you speak to anyone

Useful reading

Start with the guides below, or browse our employee ownership FAQs.

Start with a conversation

Tell us about your business and your timescale. We will give you an honest first view — including whether employee ownership belongs on your shortlist at all.

Get in touch