How is an Employee Ownership Trust established?

For an Employee Ownership Trust to be established the existing owners of the company need to sell a controlling interest to the trust.

The owners would be paid for their shareholding at the market value, typically on deferred terms over a number of years.

Once the previous owners have been paid in full, the employees of the business are then able to benefit from the profits of the business, which would otherwise normally only benefit a small number of shareholders.