Employee Ownership Trusts

Independent EOT valuations, from £495.

An EOT valuation from The Business Valuers is an independent written report on the market value of a company being sold to an Employee Ownership Trust. Fixed fee from £495, delivered in 3 working days from receipt of the information we need. It gives the trustees, the seller and their advisers one evidenced figure everyone can rely on.

James Nelson

Founder & M&A Valuation Director, The Business Valuers

17 years in UK business brokerage and valuation. 1,000+ SME valuations completed. Former Head of Corporate Sales at Christie & Co.

EOT valuations from £495. Your fixed fee is agreed before we begin.

Independent.We don't sell businesses. No success fee.

1,000+ UK business valuations
17 years of brokering & valuing experience
Fixed fee from £495 — no hourly billing
Report delivered in 3 working days

Why the price matters more than ever.

Since 30 October 2024, EOT trustees must take all reasonable steps to ensure they pay no more than market value for the shares. Sellers must also report the price and other details when claiming relief. From 26 November 2025, the capital gains tax relief on a qualifying sale fell from 100% to 50% of the gain, so the price is now a real tax figure, not just a number on the sale agreement.

An independent valuation answers the question HMRC and the trustees will ask: how was this price arrived at, and is it supported by evidence?

When you need this.

•You are an owner considering selling a controlling stake to an Employee Ownership Trust.
•You are a trustee who needs to show the price paid does not exceed market value.
•You are an accountant or solicitor advising on an EOT and need an independent figure for the file.
•You want to sense-check a price before applying for HMRC clearance.

How we value it.

Every report triangulates a normalised-EBITDA earnings multiple as the primary method, a net asset valuation, and a discounted cash flow cross-check, benchmarked against comparable transactions. For an EOT we value the controlling interest being sold on a market value basis, and we set out how deferred consideration and the company's ability to fund it from future profits have been considered.

Every document we rely on is listed in an appendix, so the trustees have a complete audit trail. Read the full method in our guide to EOT valuations.

Illustrative example

A 100% sale to an EOT.

A manufacturing company has normalised EBITDA of £600,000. A benchmarked multiple of 5x gives an enterprise value of £3.0m. With £400,000 of surplus cash and no debt, the equity value is £3.4m. The trustees agree to pay £3.4m, with £1.0m on completion from company cash and £2.4m deferred over six years from future profits. The report shows the price matches market value and that the deferred payments are affordable on the forecasts.

Illustrative figures only. Every business is valued on its own evidence.

What you'll need to provide.

•Statutory accounts for the last three years.
•The most recent management accounts.
•Forecasts for the period over which deferred consideration will be paid.
•Draft heads of terms or the proposed price and payment structure, if available.
•The share register.

Use our free EOT valuation checklist to gather everything in one go.

What we don't do.

•We are not tax advisers or solicitors. The relief claim, trust deed and clearance application are for your advisers.
•We are not RICS-regulated. Where the business owns freehold property, we use an agreed property value, or value the business excluding the freehold.
•We don't arrange funding, act as trustee or sell businesses.

What we can do instead. If you don't yet have an EOT provider, we can recommend solicitors, accountants and employee ownership specialists who set up and run trusts day to day, so you have one team around the sale rather than searching for each adviser yourself.

This is for you if…

—Owners planning a sale to an Employee Ownership Trust.
—Trustees who must show they paid no more than market value.
—Accountants and solicitors who need an independent figure for their client.

Frequently asked.

What is an EOT valuation?

It is an independent written valuation of the company, or the controlling shareholding being sold, to an Employee Ownership Trust. It sets out the market value of the shares, the method used and the evidence relied on, so the trustees can show they paid no more than market value.

How much does an EOT valuation cost?

EOT valuations start from £495. Your fixed fee is agreed before any work begins. Groups, multi-entity structures and larger transactions are quoted individually.

How long does it take?

A written report in 3 working days from receipt of the information we need, usually three years of statutory accounts, recent management accounts and details of the proposed sale.

Why do EOT trustees need an independent valuation?

Since 30 October 2024, trustees must take all reasonable steps to ensure the price they pay does not exceed market value. An independent, evidenced valuation is the clearest way to show they have done so, and it protects the seller's relief claim.

Can the seller and the trustees use the same report?

Yes, provided both understand the report is independent and not written to favour either side. Many trustees prefer to commission it directly, so the valuation is clearly theirs.

Do you give tax or legal advice on the EOT?

No. We are not tax advisers or solicitors. We provide the independent valuation. The relief claim, trust deed, clearance application and funding structure are for your accountant and solicitor.

Can you recommend an EOT provider?

Yes. If you don't yet have one, we can recommend solicitors, accountants and employee ownership specialists who set up and run trusts, and we work alongside them on the valuation.

What if the business owns its freehold?

We are not RICS-regulated, so where the business owns freehold property we use an agreed property value supplied to us, or we value the business debt free, cash free, excluding the freehold.

Request an EOT valuation.

An independent, evidenced market value from £495, with a fixed fee agreed up front.