When businesses owners are looking at exit options they should strongly consider the sale of the business to an Employee Ownership Trust
EOA Guest Blog – RVE
This report reinforces our long-held belief that when businesses owners are looking at exit options they should strongly consider the sale of the business to an Employee Ownership Trust (“EOT”). As the reports’ respondents describe, not only do you achieve a fair market price for the business you secure an independent future for the business and its employees.
The Ownership at Work survey provides a valuable insight into the views of the owners of SME businesses (10-249 employees) in the UK, as they consider their ownership succession options. It is clear that business owners are increasingly aware of employee ownership as a succession option, compared to the situation five years ago, but there is still much work to be done to improve awareness.
At RVE we have been advising business owners on their exit options since 2019, with a particular focus on ensuring owners are aware of the many benefits of a sale to an Employee Ownership Trust (“EOT”). Whilst not the solution for every type of business, an EOT transaction delivers fair value to the business owners, with low counter-party risk, ensures the independence of the Company is retained and gives the employees the ability to share in the risks and rewards of ownership, and to determine the long-term strategy of the business.
Over 1,000 UK business have chosen to adopt an EOT structure since 2015, of which RVE has advised over 30 across a wide range of business sectors.
The Employee Ownership Association (“EOA”) provides valuable support, alongside professional advisers, in helping business owners determine whether employee ownership is the right solution for their business, or whether alternative forms of ownership would be optimal. We encourage all business owners who are at the early stages of planning for management and ownership succession to make use of the resources available through the EOA so they can make the right decision for their business.
RVE is a corporate finance advisory firm that advises business owners and shareholders on the options for sale of their business, with a focus on the sale of the business to the employees through an employee ownership trust (“EOT”).