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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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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