What are the potential risks or downsides of an EOT?

An Employee Ownership Trust offers a flexible, sustainable pathway to employee ownership that benefits both the selling owner and the employees — but this model may not be right for every business.

Here are a few factors to keep in mind when considering an EOT:

• The buyout must match the company’s financial capacity and performance.
• Employees don’t hold individually sellable shares.
• Long-term success requires consistent communication, leadership, and education.
• Tax incentives vary by state.

The good news? With thoughtful planning and support, these potential challenges are all manageable.