An Employee Ownership Trust (EOT) is a unique type of business structure that was first introduced in 2014.
This structure gives the employees of a company (as a group) a majority stake in the ownership of that company.
An EOT is a vehicle that can be used by the current owner(s) of the company to plan a partial exit and a future full exit at a later stage. It creates a tax advantageous succession plan for the existing owners of the company.
The EOT structure means a majority stake in the equity of the company will be held on trust for the benefit of the employees.
One attraction of an EOT is that the future growth of the company and its business
will be for the long-term benefit of the employees.