EOI Tool Kit

Employee Ownership Toolkit

This toolkit gives business owners and advisors a clear, practical way to explore Employee Ownership Trusts (EOTs) as a succession option. You can download the full toolkit or access the individual documents and resources in the Members Area.

What is an Employee Ownership Trust (EOT)?

An EOT is a succession model where a trust holds the majority of shares in a company on behalf of employees. It helps owners exit fairly while protecting jobs, culture and community. There are now more than 2,470 employee-owned businesses in the UK.

Key benefits

• Fair value for the business
• 0% Capital Gains Tax relief on qualifying sales
• Smoother transition out of day-to-day role
• Legacy and independence protected

• Stake in the future of the business
• Tax-free annual bonus (up to £3,600)
• Stronger engagement and voice

• Resilience over the long term
• Skills and jobs retained locally
• Lower turnover and stronger culture

How the EOT journey works

1. Explore – Owner considers succession options and commissions a feasibility study.
2. Value – Independent valuation sets fair market value for the business.
3. Transition – Shares are sold to the trust using future company profits (and, where needed, bank finance or reserves).
4. Employee ownership – Employees gain a long-term stake and can receive tax-free bonuses.

Who the toolkit is for

• Owners planning to retire or step back within 1–5 years
• Family-owned businesses without an obvious successor
• Advisors who want to understand EOTs alongside trade sale, MBO and closure
• Leadership teams exploring options to protect jobs and local impact

What’s in the toolkit

The toolkit brings several short guides together in one place, including:

• What is an Employee Ownership Trust (EOT)?
• What to Ask Your Advisor About EOTs
• Advisor Checklist: Exploring Employee Ownership with Clients
• Business Succession Pathways: A Comparison (trade sale, family succession, EOT, closure for a £5m business)
• Employee Ownership Trusts: Myths vs Facts
• Top 10 Client FAQs on funding, valuation, tax, control and timelines

You can read everything in the single PDF, or download individual documents and related resources from the Members Area.

Support from Employee Ownership Ireland

Employee Ownership Ireland supports business owners and advisors across Northern Ireland with practical, neutral guidance on EOTs.

• Fully funded feasibility study (DfE supported) to test suitability and affordability.
• Case studies from NI businesses that have already transitioned.
• Advisor resources, FAQs and comparison tools.
• Confidential 1-to-1 peer chats with business leaders.
• Events and roadshows across NI.
• Members Area with videos, guides and toolkits.

Stay connected

Employee Ownership Ireland
Supporting business owners and advisors across Northern Ireland.

Email: catherine.muldoon@employeeownershipireland.com
Website: employeeownershipireland.com

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