EMI Valuations

Looking to attract and retain exceptional talent in your startup? Consider an Enterprise Management Incentive (EMI) scheme, which lets you offer share options in your company to your team. It’s a great incentive, but it’s important to play by the rules to stay on the good side of HM Revenue and Customs (HMRC) and to prevent your team from facing unnecessary tax hassles.

First things first, you’ll need an EMI valuation that’s approved by HMRC. This is a mutual agreement between you and HMRC on the price at which you can offer these share options to your employees.

When an employee decides to go ahead and convert their share options into actual shares, they’ll pay the strike or exercise price per share. This price is pre-agreed with HMRC to ensure that your team members aren’t hit with unexpected taxes.

For EMI valuations, the key is to aim for a lower company valuation, which is more beneficial for your employees. This is quite different from how you’d value your company for investors.

Our role is to work closely with you to figure out your EMI valuation. We’ll then take care of all the paperwork and liaise with HMRC to get the necessary approvals sorted.

Pricing

• £1,000 for most EMI valuations

The final price might vary depending on how much work we need to do on your financials for the EMI valuation. Don’t worry, though – we’ll have a chat about all this beforehand, so there are no surprises later on.

Got questions?

If you’re curious about our EMI Valuations service or have anything you’d like to clarify, please feel free to pick a time that suits you to have a chat with us.

In the world of startups, pinning down a valuation isn’t black and white. That’s why having a negotiable range, one that you can stand behind confidently, is key.

Or perhaps you’re an angel investor seeking an independent perspective on the value of an early-stage startup. In either case, we’re here to assist, partnering with Equidam, a renowned global leader in this field, to deliver this service.

What we offer includes a detailed report complete with financial projections, five-way valuations and clear supporting explanations. If needed, we’re also ready to rework the report within one month, allowing up to two iterations.

Pricing

• From £1,000 excluding financial model review
• From £1,500 including financial model review

Keep in mind, the final price may vary depending on how much we need to work on your financials for the valuation. But don’t worry, we’ll walk you through all the details beforehand – no unexpected surprises here.

Got questions?

Have any questions or want to discuss this service further? Feel free to pick a time that suits you best for a chat.

Incentivising your team can also be effectively achieved through growth shares.

These are a unique share class that gains value only when your company’s share price surpasses a certain threshold. This approach ensures that dilution of other shareholders’ interests occurs only if the company’s value exceeds this predetermined hurdle.

Issuing growth shares at a hurdle equal to your current company valuation means they hold no initial value, thereby avoiding any tax complications.

The key is setting the right valuation hurdle. Our role is to guide you in this process, assisting in determining a valuation to establish a ‘hurdle rate’ for your business. 

Pricing

• £1,000 for most growth share valuations

Prices may vary depending on the extent of financial preparation required for the valuation. We ensure open communication about this beforehand – no unexpected surprises.

Got questions?

If you have questions about this service, feel free to choose a time that suits to talk. We’d love to hear from you!