Can an employee ownership trust be combined with a management buyout?
My client is a limited company and its husband and wife directors own all of the shares. The directors are nearing retirement and we have been discussing their options. They are attracted to the possibility of an employee ownership trust and the initial soundings of the workforce have been positive.
There are several managers who like most of the workforce have been employed by the company for many years. It is felt that they may need an incentive to remain and take the business forward. I am therefore wondering whether it might be possible to combine a management buyout with an employee ownership trust.
Query 18 482 – Adviser
Reply from The Tax Time Lord
The husband and wife owners of the company should be able to sell the company to key managers and an employee ownership trust. However they will need to plan their...
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