Employee Ownership
BMO has been supporting employee-owned businesses across North America for over 40 years, and is proud to be a leader in bringing Employee Ownership Trusts (EOTs) to Canada. Our team can help clients understand employee ownership alternatives across a range of situations, including to support growth or as a succession plan.
Employee Ownership Trusts
Employee Ownership Trusts (EOTs) present a new succession planning opportunity for Canadian business owners. If a business has strong cashflow, stable leadership team, and an owner looking sell over 50% of the company, EOTs could be a compelling opportunity.
Tax Advantaged Sale
Business owners are exempt from tax on the first $10 million in capital gains realized in a qualifying sale to an EOT, and can pay the remaining capital gains tax over a 10-year period.
Retain & Reward Employees
EOTs are a proven tool for retaining talent and can provide employees with an unparalleled wealth building opportunity.
Preserve Legacy
A sale to an EOT can protect jobs, maintain company independence, and create an enduring ownership model that doesn’t require the company to be sold again in the future.
Our Comprehensive Service Offerings
Our tailored services for business owners, companies, and employees are designed to meet the unique needs of EOTs at all phases, and include:
Succession Planning: our Business Succession Planning team can provide early advice to business owners and their advisors on all exit strategies, including an EOT. Our team is often approached years prior to a transaction and can provide referrals to specialist advisors.
Tax Planning: our Tax Planning team provides complementary support to clients and their existing tax advisors, including in evaluating how tax benefits for EOTs can impact business owners and their employees.
Commercial Lending: BMO has the financing solutions to support at all phases of an EOT, from the initial transaction to recapitalizations and growth.
Wealth Management: BMO offers Investment Management and Advice to help retiring business owners and employee-owners create a secure future for families.
Banking Solutions: BMO has market leading banking solutions for business owners, companies and employees, such as our Private Banking, Treasury and Payment Solutions, and Bank at Work programs.
Transaction Advisory: our M&A advisors can support clients in evaluating an EOT transaction, or post-transaction with M&A growth opportunities and capital raising.
50 Years of Supporting Employee Ownership
In 2026, BMO proudly celebrates 50 years as a trusted leader in the employee ownership community. For decades, BMO has provided financing and advisory services to employee-owned businesses, such as those offering Employee Stock Ownership Plans (ESOPs) in the U.S. BMO was a leading advocate for Canada’s recent Employee Ownership Trust (EOT) legislation and makes it easier and more attractive for businesses to become employee owned.
Employee ownership models offer benefits to business owners, management teams, and employees, including preserving a company’s legacy, protecting jobs, and enabling employees to build personal wealth. Explore our latest insights and discover how we can help your organization during any phase of your employee ownership journey.
Choosing Employee Ownership
Employee ownership may be worth considering as an early strategic path. Discover how we can help your organization during the first stage of your employee ownership journey.
Capturing the Ownership Edge
Beginning the employee ownership journey means laying the groundwork for a thoughtful transition. Discover how we can help your organization during this phase of your employee ownership journey.
Future of Employee Ownership
The next phase is about optimizing outcomes for the business and its people. Explore our Latest Insights and discover how we can help your organization during this phase of your employee ownership journey.
