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By LegalEdge News

Employee ownership trusts (EOT) – what are they and why are they so popular?

Employee Ownership Trusts were first introduced in 2014 and since then they’ve been growing in popularity, especially for those looking for a different type of exit. There are estimated to be around 1,000 UK companies that have transitioned to majority employee ownership by this route, and the numbers keep growing.

RM2, EOT and employee share scheme specialists, explain why they are becoming more popular. There are a number of reasons, and they’re not all about tax:

A good alternative to a traditional exit/ sale.  

Guaranteed sale price with minimal negotiation.  

Exit on the seller’s terms.  

Free of capital gains tax.  

So, if you’re looking for an exit, it’s well worth considering an EOT, which provides tax efficiency, a flexible exit and a relatively pain-free sales process, and will create a structure to protect the business and employees for the future. 

LegalEdge works with specialist EOT advisers like RM2 Partnership to help place a business into employee ownership. For more information or to chat through your options get in touch on

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