Euan McLaughlin Outlines Employee Ownership Trusts in The Sunday Times

Corporate Lawyer Euan McLaughlin was featured in last week's Sunday Times talking about the benefits of Employee Ownership Trusts, which are becoming an increasingly popular exit route available to business owners.

"Employee Ownership Trusts (EOTs) are a fantastic option for certain business owners to exit their company in a socially conscious, low stress and highly tax-efficient manner" explained Euan.

"Rather than finding a traditional buyer, the owner instead sells to a trust established for the benefit of all eligible employees. The trust pays the owner market value for the company from (i) accumulated cash in the business, and (ii) ongoing profits. If he/she wishes, the owner can continue to be a director of the company on a market-rate package.

Key benefits of selling to an EOT include: rewarding the loyal employees who helped to build the value in the business (both with ownership and with an annual tax-free cash bonus); straightforward negotiation process without a traditional “other side”; and zero capital gains or income tax for the owner."

For more information on this and other exit planning options please visit How To Exit Your Business - Option 3 Employee Ownership Trusts (EOTs) or contact Euan on emclaughlin@sillslegal.co.uk or 01522 700490 to discuss further.