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EOT Feasibility Assessment

Template Level 12
How to Use This Assessment

Rate each statement from 1 (Strongly Disagree) to 5 (Strongly Agree). Complete all 25 questions to get your EOT feasibility score and recommendation.

Business Suitability
The business has been trading profitably for 3+ years
Annual revenue exceeds the minimum threshold for EOT viability
The business has a diversified client base (no single client > 25%)
Operations do not depend heavily on the founder/owner
The business has strong, documented processes and systems
Employee Readiness
Employees understand the concept of employee ownership
There is a strong management team capable of running the business
Staff turnover is low and team morale is high
Employees have shown entrepreneurial thinking and initiative
There is a culture of transparency and shared decision-making
Financial Viability
The business generates sufficient cash flow to fund the EOT purchase
Profit margins are stable or growing
The business can service the debt needed to fund the acquisition
Working capital is adequate without owner funding
The valuation is realistic and affordable for an EOT structure
Legal Requirements
The business is structured as a limited company
There are no legal barriers to transferring shares to a trust
Existing shareholder agreements allow for EOT transfer
The company can appoint independent trustees
There are no restrictive covenants preventing ownership change
Tax Benefits (UK)
The seller qualifies for 0% Capital Gains Tax on EOT sale
Employees can receive tax-free bonuses up to the annual limit
The business qualifies for corporation tax deductions on EOT contributions
The EOT structure will hold a controlling interest (51%+)
The transaction will be at market value (independent valuation)