OUR EOT SERVICES
An IPO isn’t always the best next step. For many founder-led businesses, transitioning to an Employee Ownership Trust (EOT) can be a compelling alternative not only to going public, but also to raising venture capital or a private-equity investment. An EOT can create liquidity, enable succession, and strengthen the organisation while preserving its culture and long-term vision.
At Alfred Henry, we support companies pursuing an EOT by providing independent, defensible valuations that meet HMRC and trustee requirements.
Working collaboratively with our clients, we help them understand the drivers of value, enhance governance, and lay the foundations for sustainable growth. All the groundwork that could also support a potential future listing, private-capital raise, or other strategic paths.
Alfred Henry provides an independent valuation and acts as a one-stop shop, supporting and delivering the entire EOT transaction. By leveraging our extensive network of specialist advisers, we ensure a seamless, end-to-end process.
Key Steps in the EOT Process
- Eligibility assessment to confirm the business meets the statutory EOT conditions.
- Transaction structuring, including sale percentage (51%+), funding approach and trust setup.
- Independent valuation to determine fair market value for the sale.
- Trustee review and approval, ensuring the valuation is fair and reasonable.
- Legal documentation, including the sale agreement, trust deed and supporting resolutions.
- Completion of the transaction, with shares transferred to the EOT and consideration terms agreed.
- Post-completion governance, including trustee oversight and ongoing compliance reporting.
- Typical timeline: 3–6 months depending on complexity and readiness of financial information.
The Importance of an Independent Valuation
- Determines the fair market value that trustees must rely on to protect employee beneficiaries.
- Forms the foundation of the transaction price, shaping the trust’s debt, repayment terms and affordability.
- Required by HMRC to demonstrate that the sale is genuine, commercial and properly evidenced.
- Provides independence, removing conflicts of interest that may exist with accountants or internal advisers.
- Ensures defensibility, with a clear methodology, rationale and supporting market evidence.
- Builds trust between founders, trustees and employees by demonstrating transparency and fairness.
- Can influence future transactions, refinancings, or even later considerations around IPO readiness.
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CONTACT US
Alfred Henry Corporate Finance
+44 (0) 20 8064 4056
enquiries@alfredhenry.com
Francis Barber House
9 Gough Square
London EC4A 3DG