Legal expertise for successful employee ownership transitions
Selling a business is about more than achieving value. For many owners, it is also about protecting their legacy, supporting employees and ensuring the business continues to thrive long after they step back.
An Employee Ownership Trust (EOT) can offer an attractive alternative to a third-party sale or a management buy-out, enabling business owners to transfer ownership to employees while preserving the independence, culture and long-term vision of the business.
At Moore SGD Law, we provide the legal expertise needed to structure and implement EOT transactions with confidence. Working closely with our tax, accounting and valuation specialist colleagues at Moore Kingston Smith, we deliver a joined-up approach that supports every stage of the employee ownership journey.
Why choose an EOT?
Employee ownership can provide a range of benefits for both business owners and employees.
An EOT may help you:
- Achieve a tax-efficient succession plan
- Preserve the culture and values of your business
- Reward and motivate employees for their contribution to success
- Maintain independence without the involvement of a third-party purchaser
- Support a gradual and controlled transition of ownership and leadership
- Create a long-term ownership structure focused on sustainable growth
The legal framework matters
The success of an EOT depends on careful legal planning and implementation.
EOTs are governed by specific requirements that must be satisfied both at the point of sale and on an ongoing basis. Failure to meet these conditions can result in tax reliefs being withdrawn and may create significant financial and governance issues for the business.
A well-structured EOT requires more than transaction documentation. It also requires careful consideration of governance, trustee arrangements, employee participation and future decision-making.
Getting these foundations right is essential to protecting the long-term benefits of employee ownership.
How we help
Our EOT specialist team advises on all legal aspects of establishing and operating an Employee Ownership Trust.
We support clients with:
- EOT transaction structuring
- Trust establishment and trustee arrangements
- Share purchase documentation
- Corporate governance frameworks
- Directors’ duties and ongoing governance obligations
- Employee ownership communications and implementation
- Ongoing legal support following completion
- Tailored employment contracts and policies
A joined-up approach
Employee ownership transactions involve legal, tax, accounting and valuation considerations that are closely connected.
Our legal team works alongside our tax, accounting and valuation specialist colleagues to deliver a fully integrated Employee Ownership Trust service, supporting you from initial planning through to implementation and ongoing advice.
Considering employee ownership?
Whether you are actively exploring succession options or simply want to understand whether an EOT could work for your business, our team would be pleased to help.
Contact us to discuss your plans and explore whether employee ownership could be the right solution for your business.
What our clients say
Tim Jessen, Group Financial Director, Golley Slater (marketing agency)
Working with Moore Kingston Smith (MKS) has been an exceptional experience from start to finish. At the outset, we knew it would be important that the steps of moving to an Employee Ownership Trust (EOT) were joined up. MKS seamless integration of valuation, legal, taxation, and general advisory services made what could have been a complex process run so smoothly. Their expertise throughout saved us significant time and resources. The team at MKS guided us with care, ensuring that no detail was overlooked and every decision was well-informed. We felt truly supported and valued throughout the entire process. Their professionalism, depth of expertise, and commitment ensured success. I can’t recommend MKS highly enough.
Lisa Shirtcliffe, Financial Director, Brandopus
Moore Kingston Smith recently supported us with our sale to an EOT, and we could not have asked for more knowledgeable advisers for this. We went into the process as novices, but they guided us through every detail. Well-versed in this area, they were well-positioned to anticipate issues before they arose, and we benefitted from full 360 advice. With both the Moore Kingston Smith tax and legal departments working together, the process felt effortlessly joined up and was rounded off with excellent commercial advice from the media team in the West End. All to a tight deadline – thank you!
