Redlaw EOT Sale, Legal Recruitment (2025)
How RVE advised on the legal recruitment EOT sale of Redlaw completed in 2025, with the corporate finance, tax, legal and trustee work delivered as one engagement.
Deal Facts
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“RVE were fantastic from start to finish. Gerry and his team guided us all the way – with expert knowledge and the whole process was smooth and handled with brilliant care. As the founders of RedLaw Recruitment, we wanted to both plan for ultimate succession but also make sure that the Company remained independent and rewarded our people. This EOT transaction achieved all of our objectives. We’d wholeheartedly recommend RVE.”
The story of the deal
Redlaw Recruitment are London based, award-winning legal recruitment specialists.
Redlaw Recruitment became EOT owned in March 2025.
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Case Study - common questions.
Yes. Most founders / controlling shareholders stay on as director (and often as chair or CEO) for between 1-5 years post-completion, then transition to a part-time non-executive or consultancy role. You agree your role and time commitment with the trustee board; there is no requirement to exit operationally. Many founders find the post-EOT phase the most rewarding part of their career, with a clear financial exit having been arranged and a plan for management succession in place.
EOA research consistently shows employee-owned businesses outperform privately-held peers on productivity, profitability and employee engagement. RVE founders consistently report that their businesses perform ahead of plan post-completion, with vendor loans paid down ahead of schedule. The cultural alignment and engagement boost typically delivers measurable productivity gains within the first 12 to 24 months of EO. Growth depends on the business; the EOT structure does not constrain it.
The deferred consideration due to the vendors is repayable from future company profits, typically over a 5-8 year period. So if the business genuinely struggles, the term of the loan note may need to be extended by 2-3 years. In extreme circumstances, some of the vendor loan may need to be written off (eg if the business were to become insolvent).
The vendors do therefore retain business risk relating to the ultimate payment of the sale consideration under the EOT model.
If the business outperforms the original projections however, the vendor loan can be accelerated, and some vendors have been paid out in full within 4 years.
We are happy to talk over Teams or meet to discuss your exit planning.
We can normally assess whether an EOT transaction will be viable and the likely valuation range at our first meeting.
For accountants, lawyers, and wealth managers
Are you working with a client who should be considering a sale of their business to an EOT? We will complement the work you do to deliver an optimal outcome for your client.