Unlocking the Potential of Employee Ownership Trusts: Insights from BWD Search & Selection

April 3, 2024

Employee Ownership Trusts (EOTs) have been gaining traction, presenting a compelling alternative for business succession. In the latest podcast episode by BWD Search & Selection, Director Chris Sellars offers profound insights into the realm of EOTs and their potential impact on the business landscape.

Hosted by David Rist, the podcast navigates through the intricacies of EOTs, shedding light on their significance and the motivations driving their adoption by business owners. Here’s a glimpse into the key highlights of the discussion:

Grasping the Concept of Employee Ownership: Chris Sellars delves into the fundamental concept of Employee Ownership, where founders opt to sell their businesses to a Trust, effectively transferring ownership to the employees. This innovative approach not only empowers the workforce but also comes with notable perks, such as exemption from capital gains tax. Chris elaborates on why this trend is gaining momentum and how it aligns with the evolving ethos of contemporary businesses.

Motivations for Embracing Employee Ownership: The conversation explores the diverse motivations compelling business owners to embrace Employee Ownership through EOTs. Beyond financial considerations, preserving the legacy and ethos of the company emerges as a driving force. Chris Sellars emphasises the significance of maintaining active involvement in the business on personalised terms, fostering a sense of continuity and stewardship among the workforce.

Anticipating Future Trends: As the regulatory landscape evolves, Chris and David analyse the potential impact of impending changes, particularly in capital gains tax regulations. They delve into how alterations in governance could redefine the landscape of exit strategies for business owners, highlighting the need for foresight and strategic planning in navigating these shifts.

To delve deeper into the field of Employee Ownership Trusts and gain valuable insights from industry experts, watch the full video of BWD Search & Selection’s podcast episode. Get in touch with our experts for a free, no-obligation chat, here.

Watch the full video here:

You can listen to the podcast on:
Apple Podcast
Google Podcast