Selling a business to its staff

^{EOTs can be win-win}

According to research by the Employee Ownership Association, in October 2023 there were at least 1,650 employee-owned businesses, across all major sectors of the economy. Around 330 of these have been created in the past 12 months, which is the largest increase of employee ownership in a single year.

A growing trend for those seeking to exit their businesses, rather than sell to a competitor they have battled for years, is to sell to those that have helped it become a business worth selling – the employees.

Created by the government in 2014, an Employee Ownership Trust (EOT) enables owners wishing to exit their business to transition ownership to their colleagues, recognising it will continue to flourish in the hands of experienced and motivated employees.