Danish Research: Further proof UK EOT-Owned businesses outperform other comparable companies

For UK business owners considering an employee ownership trust (EOT), understanding how employee-owned companies perform is an important part of succession planning.

In early 2026, the Danish Business Authority published independent research it had commissioned into the performance of UK companies owned by employee ownership trusts (EOTs). Here, we explore the findings and their relevance to business owners considering employee ownership via an EOT.

Research proves EO companies are more productive

In 2023 Ownership at Work published its People Powered Growth report into the impact of employee ownership. It confirmed a number of benefits for UK employee-owned companies, including that they are between 8% and 12% more productive. (See our previous blog on this research)

The more recent Danish-commissioned exercise provides additional evidence that companies owned by an employee ownership trust outperform their non-employee owned peers on several key measures.

Why was the Danish research into UK EOT businesses commissioned?

At the beginning of 2026, Denmark introduced new legislation to encourage business owners to transfer ownership to their employees.  Their employee ownership model is different from the UK’s (it does not involve a trust) but has the same overall goals; preserving jobs, supporting productivity and broadening distribution of wealth to those who help create it.

The Danish government wanted its own evaluation of whether employee ownership could be expected to deliver these benefits and commissioned the research.

What did the research into UK employee owned businesses uncover?

It draws these main conclusions:

• EOBs outperform MBOs - When employee owned businesses (EOBs) using the EOT model are compared with those where management have taken over the ownership (management buyouts (MBOs)) it found EOT-owned companies outperform comparable MBO firms. They enjoy greater productivity and faster growth and share the resulting financial gains with both the workforce (profit share or bonus) and the former owners (payment for their shares).
• Communication is key - Successful employee ownership requires confidence that it will work in practice, with open dialogue between business owners, enabling them to learn from each other about what works well and what doesn’t.
• Professional ecosystem needed - For a country to successfully grow employee ownership, it needs a knowledgeable and supportive professional ecosystem. For example valuers, lawyers, corporate advisers, banks etc
• Continuous education is vital - To successfully grow employee ownership long term, it’s essential that key institutions understand it and that everyone is prepared to learn and adapt
• Support - A central organisation within each country is needed to provide support for individuals and the sector as a whole, such as:
  • UK - employee ownership association (eoa)
  • USA - ESOP Association
  • Canada - Employee Ownership Canada
  • Ireland - Employee Ownership Ireland
  • Slovenia - Institute for Economic Democracy
  • Denmark - Center for Employee Ownership / Center for Medarbejdereje.dk

What recommendations does the report make?

Yes, it makes eleven recommendations for employee ownership to be a success in Denmark, including:

• Targeting business owners and their advisers
• Building awareness campaigns in high-potential business sectors
• Developing “transition champions”
• Building a community of advisers and of employee-owned businesses
• Ensuring guidance and support is available
• Continually evaluating policy and being prepared to refine it

The full report is an excellent and practical resource which should be of great value to those in any country tasked with growing employee ownership. It’s available to read here.

Thinking of transferring your business to an employee ownership trust (EOT) model?

For business owners considering an employee ownership trust, the research offers encouraging evidence. The emphasis on communication, knowledgeable advisers and ongoing learning and support shows what is practically needed to make EO a success.

Could an EOT be the right succession route for your business?

If you’re encouraged by this research to consider your company becoming employee-owned, please contact Postlethwaite’s trusted experts for a no obligation discussion. Fill in the 'Get in Touch' form on this page, call us on 02038189420 or email info@postlethwaiteco.com.

Thank you to Director, Andreas Pinstrup Jørgensen and colleagues of Demokratisk Erhverv for undertaking the research and adding to the evidence that employee ownership provides many benefits!