A choice of options will ultimately give you peace of mind...
When selling a significant asset like your business, a choice of options will place you in a stronger negotiating position and ultimately give you peace of mind.
Alongside selling to outside investors and MBO’s, employee ownership trusts are becoming increasingly popular achieving 21% average growth year on year since 2018.
Due to changes in the capital gains tax regime in 2020, employee ownership trusts, regularly outperform selling on the open market. We believe employee ownership should be considered by every shareholder contemplating succession. Here’s why…
Tax Free:
Rather than selling your business to an outside investor, your business can be sold to your employees' tax free with a 98% rate of success. Any excess cash forms part of the consideration and is distributed tax free on day one.
Flexible:
Employee ownership gives you the opportunity to structure the terms of the transaction to suit your situation. You can proceed at your own pace and continue serving as a trustee, director, or employee or step away entirely.
Ethical:
When the ownership of your business transfers to your employees, it transitions from an autocracy to a democracy. Employee representatives are elected to the board of trustees and board of directors preserving some legacy company values and values important to employees moving forward. Employees are eligible for tax free bonuses up to £3600 per annum.
Keep your options open, using our combined service…
In some instances, businesses may benefit from being part of a larger organisation that is able to offer employees career progression and is able to take the business to the next level. However, corporate culture isn’t for everyone, and employee ownership can preserve a company’s unique identity and ethics while maintaining a similar growth trajectory. Employee ownership delivers all the benefits of having sold your business and more, including getting your time back, but you also get to ensure your business is heading in the right direction before saying goodbye completely.
Our combined service allows vendors to explore a trade sale first, with the option of switching to employee ownership later should a trade sale fail to meet expectations.
Unique to exitbydesign, the Combined Service is fast and efficient, delivering a 98% rate of success.
Our Combined Service allows you to switch to employee ownership seamlessly, without incurring additional fees.
Call us on 01384 274 778 / 075 888 925 88 to discuss or go ahead and book a free consultation to discuss your options.