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).
Find out how we recently helped Retrac Group accelerate their EOT here.
An Employee Ownership Trust (or “EOT”) enables exiting owners to transition ownership of a business to their employees, leaving it in experienced hands while also rewarding and motivating the employees who become co-owners.
Eligible employees will indirectly own the business, and will collectively be beneficiaries of the trust, receiving financial benefits that would typically be given to shareholders.
The exiting owners can remain involved with the business (continuing to own up to 49% of the share capital), enabling them to help plan for the future without making any immediate or dramatic changes in management.
Since its introduction by the Government in September 2014, the EOT has become an increasingly popular option for exiting owners given the wide range of benefits it can provide to the business, its exiting owners, and its employees.
EOT buy-outs are often funded through deferred consideration based on future profitability. This means that shares are sold by the shareholders on a deferred payment basis, with instalments being paid over a period of time. By using external finance, it is possible to speed up access to these funds for the selling shareholders and therefore fast-tracking the EOT.
Our funding is available for UK based Limited companies with experienced management and employee teams.
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At Shawbrook we have worked with a number of businesses as they transition to an EOT. Read about how we supported precision engineering firm and F1 supplier, Retrac Group, here.
If you are considering an EOT for your business or advising a client on their potential transition to employee ownership, then get in touch today to see how we could help.