Business advisers
If you advise company owners on legal, tax or other financial matters you'll know that business transfer and ownership succession can be a complex challenge for any business.
A recent report from the DTI's Small Business Service - 'Passing the Baton' - says that employee buy-outs are one of the main business succession options for company owners. But the report says that "the possibility of an employee buy-out is not always considered and explored to the fullest extent possible."
A sale to employees is an increasingly sound and beneficial answer to ownership succession because:
A range of tax advantaged share schemes from the Share Incentive Plan, through the Company Share Option Plan [CSOP] and SAYE have made employee ownership a rewarding and desirable succession route.
Selling to the workforce is a way for owners to preserve the integrity and continuity of the business they've built up, while acknowledging the contribution of employees.
Owners get a fair market value for the company, without having to sell to a trade competitor or others who are more likely to dispose of the business.
Because of those factors, finance is now readily available for the transfer to employee ownership.
The Employee Ownership Association can provide more information about employee ownership and employee buy-outs. Contact us to find out how we can help.