I’m looking at doing a next round of investment but want to take on an employee and provide them Share options under the EMI scheme –
I want to make sure I do things in the right order so they benefit from an increase in valuation.
Is the valuation for the EMI scheme influenced by or does it need to be the same as the investment valuation? Could you have a lower valuation justified to the revenue for the EMI process?
For example if the business at the 1st round of investment was worth £1m then the next round is £2m – to benefit the employee to have the option price be at the £1m valuation does the scheme need to be set up before the next round of investment?