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GuideIntermediate

How the Money Works in an Employee Ownership Trust (EOT)

A practical Common Trust guide to the financial mechanics of an EOT transaction, including financing, structuring, seller payment, and deal design.

Source: Common TrustAdded June 12, 2026Published 2024
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Why it matters

Founders need to understand how an EOT transaction is funded and how sellers are paid before they can evaluate whether the model is realistic.

Best for

Owners and advisors moving from EOT curiosity into financial feasibility and transaction planning.

This free Common Trust web article was published in 2024 and updated by the source in 2026. It explains how acquisition debt, seller financing, outside equity, cash flow, and seller repayment can interact in an EOT transaction.

Use it to build transaction vocabulary and questions, not to choose a capital structure. Common Trust advises on EOT transactions, and its own notice describes the article as general information rather than legal or tax advice; readers should bring company-specific assumptions to independent advisors.

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Next readings

Continue through the reading paths that include this resource.

From Employee Ownership Trusts

Using an Employee Ownership Trust for Business Transition

Choose this paid 2024 NCEO book for a deeper treatment of structure, financing, governance, employee equity rights, and operations. It is the advanced branch, not a prerequisite for early comparison.

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