Securing the future of The Vanilla Room through employee ownership  

The team advised the owner of K Larcher Ltd, which trades as The Vanilla Room, an award‑winning independent hair salon based in Hornchurch, Essex, on succession planning and the successful sale of the business to an Employee Ownership Trust (EOT).

Established in 1995, The Vanilla Room has built a strong reputation for expert cutting, bespoke colour, hair extensions and specialist hair services, supported by a loyal client base and an experienced professional team.  

The business owner was keen to identify a succession solution that would allow her to step back from ownership while protecting the long‑term future of the business, its brand and its people. After reviewing the available options, an EOT sale was identified as the most suitable outcome, enabling continuity for clients and staff while securing employee engagement and long‑term stability. 

“Employee Ownership Trusts can offer a highly effective succession solution for business owners who want to protect their legacy while rewarding the people who contribute to the ongoing success of the business. By working closely with the owner, the trustee and legal advisers, we were able to deliver a transaction that balanced valuation, tax efficiency and long‑term sustainability.”  – Stuart Sheldrick, Corporate Finance Director at Affinia.

How we supported

Our Corporate Finance team provided comprehensive support throughout the EOT process. Our involvement included:

Our involvement included: 

Advising the business owner on succession planning options and assessing the suitability of an Employee Ownership Trust

Preparing a valuation of the business, agreed with both the vendor and the independent trustee

Obtaining HMRC clearance to provide certainty around the tax treatment of the transaction

Working closely with the legal team to support the preparation and execution of all transaction documentation

Presenting to employees ahead of completion to explain what the EOT structure would mean for them and the future of the business

The outcome 

The sale of K Larcher Ltd (trading as The Vanilla Room) to an Employee Ownership Trust completed successfully, delivering a tax‑efficient exit for the owner while ensuring the salon remains independently owned for the benefit of its employees. The transaction preserved the brand, safeguarded jobs, strengthened employee engagement and created a stable platform for the continued success of The Vanilla Room within its local community.