EOTs have been aggressively marketed as a tax-free share sale, but that should not deter practitioners from raising EOTs as a standard discussion point for any business owner considering the future of a private business. One of the original purposes of the EOT was to embed the concept of employee ownership and, in the post-covid economy, they provide a viable alternative for business ownership to enhance productivity with a stable and highly motivated workforce. EOTs are another form of MBO for an existing business, and they are also an equally valid option for start-ups.
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EOTs have been aggressively marketed as a tax-free share sale, but that should not deter practitioners from raising EOTs as a standard discussion point for any business owner considering the future of a private business. One of the original purposes of the EOT was to embed the concept of employee ownership and, in the post-covid economy, they provide a viable alternative for business ownership to enhance productivity with a stable and highly motivated workforce. EOTs are another form of MBO for an existing business, and they are also an equally valid option for start-ups.
If you are not a subscriber, subscribe now to read this content.
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