Selling your business to employee ownership trusts

The rise in employee ownership as an exit strategy is one of the growing trends of the past five years.

As of January 2021, a rate of 1 in 20 of all exits was to an employee ownership trust (EOT), and there are indications the pandemic has done little to stall the speed of growth in the sector. 

One of the main reasons owners decide to sell to an EOT is to protect the culture of the business and ensure that their hard-won legacy is safeguarded into the future.  

Employee ownership represents continuity for employees and business as usual for customers and suppliers.  

Conversely, it is not always straightforward to find a trade buyer which is the right cultural fit, and many owners feel that this is a compelling reason to look more closely at employee ownership.  

The UK government supports the view that employee-owned businesses are more resilient and better at engaging and retaining staff than other ownership structures.   

This has led to the creation of a favourable tax landscape whereby business owners benefit from a zero per cent capital gains tax rate on a sale to an EOT.  

This tax break, together with the scaling back of entrepreneur’s relief, has incentivised more and more owners of SMEs to consider employee ownership for their succession plan. 

Employee ownership may not be the right exit route for all owners or all businesses.  The transformative nature of a sale to the right strategic trade buyer or the value-add that private equity can provide may outweigh all other considerations.  

However, employee-ownership is now, rightly, seen as part of the mix of exit options on the table.

  • To read this feature in full and access further Lancashire business news, advice and analysis subscribe to Lancashire Business View magazine or join the LBV Hub from just £2.50 per month. Click here to subscribe now.

Enjoyed this? Read more from Stephen Hadlow, Brabners

Latest news

1

Victorian Plumbing reports strong financial performance Victorian Plumbing Leyland

Victorian Plumbing reports strong financial performance

07 Oct 2025

2

Vincents appoints head of probate and head of wills, trust and estate planning Vincents Solicitors’ Private Client Director Lisa Lodge (centre) with Head of Wills, Trusts and Estate Planning Sean Aldridge (left) and Head of Probate Patricia Prescott (right) at the firm’s Lytham office

Vincents appoints head of probate and head of wills, trust and estate planning

07 Oct 2025

3

fulfilmentcrowd delivers record-breaking growth Lee Thompson and Jon Davies

fulfilmentcrowd delivers record-breaking growth

06 Oct 2025

4

Gearing up for blossoming Red Rose Awards 2026 Red Rose Awards 2026 launch event

Gearing up for blossoming Red Rose Awards 2026

06 Oct 2025

5

New managing director at Freedom Heat Pumps Graham McCracken

New managing director at Freedom Heat Pumps

06 Oct 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

Help to grow management course
Help to grow - barriers to growth.png.png
LBV Hub Seminars
26 Sep 2025 - 16 Dec 2025

Help to grow management course

Preston Campus , Preston , PR1 2HE

09:00 - 15:00

The Future of Work: Tech, teams and thriving in a changing world
Oct PTC.png.png
LBV Hub Networking
07 Oct 2025 - 07 Oct 2025

The Future of Work: Tech, teams and thriving in a changing world

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 19:30

Chamber Breakfast Networking – October
Lancs-cham-logo.jpg.jpg
LBV Hub Networking
07 Oct 2025 - 07 Oct 2025

Chamber Breakfast Networking – October

Soul Bowl, Morecambe, LA4 4BU

08:00 - 10:00

HR Recharge: Empowering today’s workforce, transforming tomorrow’s workplace
Muted Blue (4).png.png
LBV Hub Seminars
08 Oct 2025 - 08 Oct 2025

HR Recharge: Empowering today’s workforce, transforming tomorrow’s workplace

Crow Wood Hotel & Spa Resort, Burnley, BB12 0RT

08:30 - 13:30

Empowering franchise growth in the North West
TFA Event - Empowering Franchise Growth.jpg.jpg
LBV Hub Seminars
09 Oct 2025 - 09 Oct 2025

Empowering franchise growth in the North West

Forbes Solicitors Sceptre Way Walton Summit Centre , Preston, PR5 6AW

08:00 - 10:00

Empowering Franchise Growth in the North West
Empowering Franchise Growth in the North West event
LBV Hub Seminars
09 Oct 2025 - 09 Oct 2025

Empowering Franchise Growth in the North West

Forbes Solicitors, Sceptre Way, Walton Summit Centre, PR5 6AW, PR6 6AW

08:00 - 10:00

Advantage: AI – A Workshop for Business Leaders – Oct 10th
Ai 10.10.png.png
LBV Hub Seminars
10 Oct 2025 - 10 Oct 2025

Advantage: AI – A Workshop for Business Leaders – Oct 10th

Door4 Office, Burnley Wharf, Burnley, BB11 1JG

09:00 - 12:00

Unlocking major project opportunities in the North West
Lancs-cham-logo.jpg.jpg
LBV Hub Seminars
15 Oct 2025 - 15 Oct 2025

Unlocking major project opportunities in the North West

Strathmore Hotel, Morecambe, LA4 5AP

08:00 - 10:00

The New Employee Rights Landscape: Day One Compliance Essentials
EventBrite NORi - 15th Oct 2025 Webinar.png.png
LBV Hub Webinar
15 Oct 2025 - 15 Oct 2025

The New Employee Rights Landscape: Day One Compliance Essentials

Microsoft Teams, Microsoft Teams, PR253XH

13:30 - 15:00

The Business Network Central & East Lancashire
LBV Header (26).png.png
LBV Hub Networking
16 Oct 2025 - 16 Oct 2025

The Business Network Central & East Lancashire

Stanley House, Blackburn, BB2 7NP

11:30 - 14:15

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV124 Online Graphic
Subscribe now

Weekly news bulletin