Road to Exit 1: Sales to EOTs

Join us for our first Road to Exit session with law firm Harbottle & Lewis, covering sales of businesses to Employee Ownership Trusts (EOTs).

This workshop will guide you through the process and pros and cons of selling to an EOT. If structured correctly, an EOT sale can result in:

• Significant financial advantages, including Capital Gains Tax (CGT) exemption on the sale proceeds and inheritence tax planning
• Management of the business kept within existing team of employees who already understand the business
• A workforce invested in the future of the business as stakeholders
• Stronger company culture built around shared ownership and collective success
• Better client relationships as engaged employees provide superior service
• Competitive differentiation , aiding employer branding and acquisition
• Smooth ownership transition without needing external buyers
• Business continuity with existing management and culture intact

For recruitment businesses specifically, where success depends heavily on employee relationships with clients and candidates, the increased engagement and retention that comes with employee ownership can be particularly valuable in building long-term client partnerships and maintaining institutional knowledge.

EOTs are a great way for recruitment agency owners to maximse a sale whilst fostering a unique employee culture. Tom Macleod, Partner, Harbottle and Lewis

This session will provide practical insights to evaluate whether an EOT exit strategy aligns with your business objectives and succession planning goals.

Tom Macleod, Partner,. Harbottle & Lewis

Tom is a corporate partner and co-head of the venture capital and emerging companies practice.

He advises founders, growing businesses, VC funds and angel investors on acquisitions, disposals, exits, and financing rounds (S/EIS, venture capital, venture debt, VCT, growth capital).

Known as a rising star, Tom combines excellent technical skills with a pragmatic, commercial approach. He specialises in high-growth tech and recruitment companies, handling both early-stage investments and later-stage transactions.

Tom trained at CMS, worked at Gibson Dunn & Crutcher, and joined Harbottle & Lewis in February 2017.

David Scott, Partner, Harbottle & Lewis

David is a tax specialist with extensive experience advising entrepreneurs and recruitment businesses across their lifecycle.

His core expertise includes corporate and personal tax advice, M&A transaction tax aspects, and share incentive arrangements. He guides companies through tax-efficient fundraising (EIS/SEIS) to exit strategies, specialising in employment tax issues and share-based incentives like EMI, CSOP, and bespoke arrangements. David also advises on employee benefit trusts (EBT) and employee ownership trusts (EOT).

As head of the charities and philanthropy group, David also supports not-for-profit organisations and philanthropists on charity law and tax matters. He's a member of the International Tax Specialist Group.