Employee Ownership Trusts.

An EOT has benefits for all stakeholders. The owners can realise value for their business, benefit from generous tax reliefs and leave a legacy for the future. Employees in an EOT owned business are more engaged and motivated and can share in the future success of the business. An EOT can create a solid foundation for future growth, and a more resilient business in the long term. 

Dains supports businesses contemplating employee ownership through a five-step process. 

1. Planning 

We work with clients to consider alternative ownership structures, which may include trade buyers, private equity, management buy outs and employee ownership. Employee Ownership is not appropriate for every business, and it is sensible to consider all alternatives before committing to a transaction, despite the generous tax treatment for outgoing shareholders.

2. Deal Design  

We work with clients to create a management and financial structure that works, long into the future, for both the outgoing shareholders and the business. 

3. Valuation 

It is important that all stakeholders are confident that the business has been valued fairly, before a change of ownership. We produce detailed valuations where appropriate, and also provide a commentary on third party valuations to build understanding amongst outgoing shareholders and new trustees of the EOT. 

4. Cashflow Modelling  

Successful transactions are achieved when the trading entity is not cash constrained, following a transaction. Working alongside our clients, we will produce a financial model containing the proposed deal structure and a range of trading scenarios, depending upon the client requirements.

5. Tax Advisory  

We advise shareholders on the tax implications of the transaction, prepare and submit a tax clearance to HMRC and liaise with other advisors on all tax aspects of the transaction.

6. Execution 

We work alongside legal advisors and funders, to complete the transaction. Working alongside the shareholders we will support the management team and trustees on financial aspects of the transition to employee ownership. 

Elevate your business through Dains' expert management and advisory services for Employee Ownership Trusts (EOTs):

Our dedicated expertise ensures efficient trust management tailored to the unique needs of employee ownership structures. Beyond specialised administration, our team provides comprehensive advisory services, guiding businesses through the complexities of establishing and maintaining EOTs, including legal compliance, regulatory requirements, and strategic planning. Additionally, we foster a culture of employee engagement, supporting businesses in maximising the benefits of employee ownership and creating an environment where employees are truly invested in the success of the company.