FINANCE
Rodney Sutton, Advisory and Assurance Partner, and Head of Manufacturing and Tim Levey, Chairman at Kreston Reeves
EMPLOYEE OWNERSHIP TRUSTS Are they right for your business? The last 15 months have shown us that however much we plan, sometimes we are thrown a curveball. However, that doesn’t mean that we shouldn’t plan or ignore the future. There are lots of options to consider when creating the best succession plan for your business, including identifying future leaders, empowering and retaining them or a change of ownership. Each route will have its own advantages, complications and tax consequences. In our experience, the most effective succession is carefully thought through with a clear and far-sighted roadmap.
In our experience, the ❛❛ most effective succession is carefully thought through with a clear and far-sighted roadmap ❜❜ 48
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You could: n S tart a talent management programme to develop individuals who are important to the organisation n O ffer a share option scheme to encourage the retention of key managers n E stablish an employee ownership trust to help employees own shares within the business
n C onsider whether a management buyout is an option n D ecide whether there’s a family member capable of assuming a leadership role in the future n Investigate selling the business to an external buyer Below we explore Employee Ownership Trusts (EOT).
