Funding for Employee Ownership Trusts

Empowering employees, growing businesses

Whether you want to introduce an employee ownership scheme to improve engagement, provide added benefits for your staff or exit the business, we can help you achieve this transfer of ownership.

Our experienced team arrange funding for a wide range of scenarios, including acquisitions, buy-outs and restructures. We work with advisors, accountants,  SMEs, sponsors and trusts and create bespoke solutions to support businesses and provide financial stability as they transition to Employee Ownership Trusts (EOT).

 

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Funding for EOTs at a glance

Our funding is available for UK based Limited companies with experienced management and employee teams.

  • Commercial Loan facility, with term typically 3-5 years
  • Capability to provide funding to the trust, the operating company or a combination of both
  • Repayment: amortising and bullet profile with initial capital holidays available 
  • Security: senior all assets debenture, additional security may be required
  • Corporate structure must meet Employee Ownership Trust requirements:
    • EOT must acquire and retain a controlling shareholding in the company
    • Company must be a trading company or holding company of a trading group.
    • EOT must be set up for the benefit of all eligible employees on the same terms
    • Number of people who are directors or employees and who continue to hold at least 5% of the company’s shares after the transition must not exceed 40% of the total number of employees
Funding for EOTs at a glance

The benefits of working with us

  • EOT buyouts are often funded through deferred consideration based on future profitability. Our facilities speed up the access to these funds for the selling shareholders
  • Support from team experienced in business transitions with industry experience and understanding of EOT principles and related market factors
  • Fast-track ownership transition with upfront funding for the EOT whilst maintaining stability and cashflow in the business
  • Quick decisions with short lines of communication direct to decision-makers
  • Our solutions can combine funding for the EOT buy out as well as the next stage of growth in the business
The benefits of working with us
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