Corporate Finance Advice
The Employee Ownership Trust (EOT) offers significant benefits to vendors selling their businesses. As a consequence, change of ownership to an EOT has become an increasingly popular and compelling alternative for vendors over traditional exit routes such as sales to private equity firms or strategic buyers.
RM2 Corporate Finance, a division of RM2, focuses on the structuring and raising of capital to support change of control EOT transactions so that vendors get fair value and a path to liquidity.
Criteria for EOT transactions
- £3-100+ million in enterprise value
- Strong management team
Services we offer
- Employee ownership transactions
- Capital sourcing
- Business valuations
- Strategic advice
Benefits of EOT transaction
- No capital gains tax for vendors selling more than 50%
- Sell to a friendly buyer on flexible terms
- Income tax-free cash bonuses for employees
- Tax-advantaged employee share schemes for key employees
- Representations and warranties required compared to third party sale
- Flexible terms to meet shareholder needs
- 3-4 month process to completion
Benefits to the business
- Company remains independent
- Vendors can remain involved
- Low risk transaction and minimal disruption
- Founders create a lasting legacy
- Employee engagement through ownership
What can RM2 offer?
With over 175 years cumulative corporate finance & employee ownership experience, RM2 Corporate Finance is the most experienced in the industry:
- Advisor to middle market business owners.
- Over 175 years cumulative corporate finance & employee ownership experience
- Over £750 million in enterprise transactions
- 150+ employee ownership transactions completed
We offer a free, no obligation feasibility analysis. Find out more and book your initial consultation by emailing firstname.lastname@example.org or call 020 8949 5522.
"For twenty years, RM2 have been advising successful private companies on equity incentives for employees. We have seen thousands of entrepreneurs enjoy the success that comes from shared ownership. Now, we are helping business owners release the value and benefit of employees through employee trust transactions. By combining our deep knowledge of private company share ownership with corporate finance and banking expertise, we have developed a compelling exit solution for and business owner seeking a win-win outcome" - Nigel Mason, Managing Partner
"Years of experience teach us that the best employee ownership transactions are those that work well for all stakeholders. As such, we believe in applying sound corporate finance principles to transactions on behalf of our clients. Successful transactions provide liquidity for shareholders, a significant benefit to employees generally and incentives for key employees that fully align the interests of all parties. We believe our proven ability to raise capital and structure employee ownership transactions from both a corporate finance and employee benefit perspective is unique." - Garry Karch, Managing Partner