We recently assisted an existing client on a journey to grow their business, by helping them to become an Employee Ownership Trust (EOT).
Having worked with our client for several years across a range of services, including, accounts, tax compliance, tax planning and succession planning with other businesses, we were delighted to support them on their growth journey to becoming an EOT.
Connor Smith, Senior Tax Manager and EOT Expert, was introduced to the client on behalf of Colin from our Chester office, who explained the benefits and advantages of becoming an EOT.
The process
We first met with the clients to completion to discuss their long-term succession plan which is where the discussion around EOTs started.
We then met with the clients numerous times to discuss the benefits to the team, the sellers as well as the legacy of the business they’d spent over 40 years creating. The legacy and the team’s wellbeing were at the forefront of the clients’ mind.
We devised a plan which centred around affordability for the business whilst also ensuring the shareholders were paid within a reasonable timeframe.
Throughout the process, we supported the clients by preparing a formal valuation, forecasting results to determine how proceeds could be affordably paid, HMRC clearance applications, meeting with the staff to discuss what it means for them as well as general support throughout the transaction.
But how did the client think we did?
“The whole process was handled well by Connor and Colin and the legal team suggested by Connor, all concerned didn’t put any pressure on us and the meetings were all well-structured and allowed us to put our input in. The final stage where Connor and Colin met the staff and through their presentation and one to one questions put the whole staff at ease.
We would recommend DJH to other friends in business for their easy and professional approach to our accounting needs. We would certainly recommend them to other businesses who have similar requirements that we had, and where an EOT might be an option for them. In particular, Connor has an excellent understanding and experience with the delivery of an EOT who answered our many questions managing the process from start to finish.”
