Do you want to realise the value in your business, but concerned about the time and cost issues surrounding finding a buyer, talking to competitors and engaging in lengthy due diligence?
Employee Ownership Trusts can benefit business owners who are considering selling their business.
The Finance Act 2014 introduced the concept of the Employee ownership Trust (“EoT”) but these have only gained traction in the last couple of years – May last year saw, for example, Julian Richer transfer a stake in his audio business, Richer Sounds.
Briefly, owners of a business may sell all or a qualifying interest in their business to a trust, the beneficiaries of whom are the employees. The transfer of the business must be at fair value, and provided the conditions are met, sellers can dispose of their shares without triggering a capital gains tax liability.
For more information, please watch our webinar, hosted in conjunction with Clydesdale Bank and Quantuma Corporate Finance.