Employee Ownership Trusts – what the M&A firms don’t want you to know

I recorded this video with the very brilliant and lovely Rob Metcalfe a few months ago, and it has stuck with me.

Rob is Chairman of Richmond & Towers and is in the unique position of having completed not one but two Employee Ownership Trust (EOT) deals in the last year. We explore the ideas, opportunities and potential pitfalls of EOTs in relation to other more conventional trade sales or management buyouts and discuss why the sort of sale is so much more than its tax benefits and ‘worthy’ credentials.

Despite the fact there are fairly few Employee Ownership Trusts (EOTs) in the UK currently, I’ve had numerous conversations recently about the validity of them as an alternative to trade deals. In my chat with Rob, we explore this ‘of the moment’ topic including;

  • What exactly is an Employee Ownership Trust (EOT)?
  • The benefits of EOT to traditional trade deals
  • The real benefits to a vendor if they decide to go for an EOT
  • The fact that tax benefits shouldn’t be your sole motivator
  • The flexibility of EOTs as a way to really shape the transaction in a way that suits you
  • The ongoing benefits to employees
  • Whether an EOT is a more ‘worthy’ way to exit your business
  • Flipping the ‘flog it and run’ model on its head
  • The types of legal and financial advice you should take if considering an EOT
  • Why M&A firms might not be as keen on this type of sale

Rob notes that the EOA website has a great deal of information and guidance on EOT’s – so do take a look or contact Rob or myself if you want to chat further.




Search the whole etc Playbook...

We have 100's of articles to help you with leadership, growth, talent and running a better business.

Agency Founders Surgery - free 1 to 1.

If you have something on your mind, a challenge you’re wrestling with or just want an alternative point of view, I’d be very happy to lend an ear and maybe help you start to unpick the issues.