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Writer's picturePhil Petty

Financial Preparation for Employee Ownership

Updated: Apr 19, 2023

Before we measure the suitability of other aspects of your business, it’s important to ascertain that financial performance is strong enough to support transition to employee ownership.

Can financial performance support transition to employee ownership

As a starting point, our financial review assess whether the value of your business matches shareholder aspirations and whether projected profits are able to support a realistic payback period and any future stakeholder incentives.


If financial performance and operating structure is unable to support a transition to employee ownership, our services can be paused until the financial position is improved.


Delivered by specialist corporate finance accountants, the financial review highlights the necessary historical and forecasted financial information required for a valuation of your business and the financial due diligence required by lenders. The financial review models different debt repayment scenarios which best suit your situation and objectives.


Outputs:


• Gain an understanding of historical financial reporting processes

• Adjust profits, to reflect the business changing hands

• Prepare both an intrinsic valuation, sanity checked with a relative valuation of your

business

• Formulate financial forecasts modelling a transition to employee ownership

• Model and forecast different debt repayment scenarios exploring future funding

options

• If funding is required, we can introduce the opportunity to a range of specialist lenders

investing in EO businesses.


Following a positive financial review, we assemble a team of specialist advisors and manage all the moving parts of your transition to employee ownership.


Call us on 01384 274 778 / 075 888 925 88 to discuss or go ahead and book a free consultation to explore your options.



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