INDEPENDENT BUSINESS VALUATION SPECIALISTS
XVALUNITED
KINGDOM

Employee ownership trusts
Market value the trustees can defend.

An employee ownership transition needs a defensible share value and a payment structure that the business can sustain. The interests of sellers, trustees and employees are not identical. Independent analysis helps make those trade-offs visible.

Request a proposal Read the technical brief
Independent opinionSame-day reviewStrictly confidential

TCGA s.236H

CGT relief conditions

Market value

Ceiling for trustee payment

Deferred

Funded from future profits

A confidential conversation

An important decision deserves an independent view.

Tell us about your company, your objectives and your timeframe. We will review the instruction before proposing a scope, fee and delivery timetable.

  • Independent opinion, never an automated estimate
  • Scope, fee and timetable agreed before work begins
  • Confidential from the outset

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What happens next

  1. 1.We review your enquiry the same working day
  2. 2.A short call to understand your circumstances
  3. 3.A written scope, fee and timetable is proposed

No obligation. No automated valuation. No documents required.

When you need it

Typical situations
we are instructed on.

01

Sale of a controlling interest to an EOT

02

Trustee review of the proposed consideration

03

HMRC clearance applications

04

Refinancing or changes to deferred payment terms

Technical brief

A price trustees can substantiate

The valuation distinguishes the value of the company from the interests transferred, including voting rights and any retained holdings. It documents normalised earnings, comparable evidence, material risks and sensitivities. Trustees should take their own legal and tax advice on their duties and the applicable market-value requirements.

Deferred consideration and resilience

Many EOT transactions are funded substantially from future cash flows. We assess the effect of repayments on investment, liquidity and downside resilience. A headline consideration payable over several years is not necessarily equivalent to the same sum at completion.

Coordinate valuation with specialist advice

EOT qualification and tax treatment depend on statutory conditions and the transaction facts. The valuation is one part of that process, not a tax clearance or eligibility opinion. Current rules, trustee independence, control requirements and any relief clawback must be reviewed by the appointed advisers.

Methodology

The methods we apply — and why.

01

Controlling-interest valuation

Value of a 51%+ holding on a market-value basis, including the premium a hypothetical purchaser would pay for control.

02

Affordability testing

Cash-flow modelling of deferred consideration against trading, tax and working-capital needs.

03

Sensitivity analysis

Downside scenarios to show trustees how the payment schedule behaves if performance falls short.

Key valuation issues

Where value is won or lost.

Trustee duties

Trustees must not pay more than market value; an independent report is central to their decision.

Recent rule changes

Finance Act 2025 tightened trustee independence and requires trustees to take reasonable steps on value.

Deferred consideration

Interest, security and payment period affect both affordability and the sellers’ actual proceeds.

Post-sale governance

The valuation should reflect the business as run after the sale, not only its historic performance.

Your instruction, clearly defined

Scope agreed before work begins.

We agree the valuation purpose and date, the interest being valued, the methods considered, the information required and permitted reliance. The written proposal sets out the fee, VAT treatment and delivery timetable. The result is a documented expert assessment — not a transaction guarantee or an automated estimate.

Primary sources & professional references

HMRC — Employee Ownership TrustsIVSC — International Valuation Standards

General technical information. Legislation must be checked at the instruction date. Legal, tax and accounting advice are outside the valuation scope unless expressly agreed.

Questions

They can, but trustees increasingly need their own independent assessment or explicit reliance.

Related expertise

Other valuations we perform.

All valuation services
Business sale & acquisition

Business sale & acquisition

Understand the value before you negotiate a sale, acquisition or strategic exit.

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Management buy-outs

Management buy-outs

Independent valuation for management teams, sellers and financing discussions.

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Investment & fundraising

Investment & fundraising

Pre-money, post-money and share-class analysis for investor negotiations.

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