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.
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