RH Advertising transitions to employee ownership with support from PKF Francis Clark

We advised leading South West agency RH Advertising on its successful transition to employee ownership, securing the long-term future of the business and its team.

The deal saw RH Advertising’s shareholders transfer ownership to an employee ownership trust (EOT). The move reflects the company’s commitment to continuity for its clients and staff, ensuring its independent ethos and reputation for excellence in the higher education and public sectors remain at the heart of its operations.

We provided comprehensive corporate finance and tax advisory services, including:

Valuation and transaction support to ensure a fair deal for both shareholders and the trust
Tax structuring for compliance and efficiency, including HMRC clearance
Affordability modelling for deferred consideration payments
Legacy planning to safeguard the agency’s future success

Nicola Manclark, tax partner at PKF Francis Clark, said: “We are delighted to have supported RH Advertising in its transition to employee ownership. This deal not only secures the future of a highly regarded regional agency, but also ensures continuity for its core clients in the education and public sectors.

“The EOT structure provides a fair outcome for shareholders and a compelling opportunity for staff to share in the company’s ongoing success. We wish the team every success in the future.”

From left: Paul Ridgers, Rebecca Rees-Green, Emily Clark and Mitch Floyd-Walker at RH Advertising (Photo: RH Advertising)

RH Advertising, based in Exeter, was founded in 1976 and has grown into an education sector specialist. Today its team works on local, national and international projects, planning and buying over £9m of advertising each year. The decision to adopt an EOT was driven by a desire to prioritise legacy, continuity and responsible ownership, rather than simply maximising shareholder value.

Paul Ridgers, managing director of RH Advertising, said: “PKF Francis Clark guided us knowledgeably through the EOT process. They were quick to react to changes and provided highly detailed and comprehensive advice and reports from both a valuation and tax perspective. We felt in good hands throughout this important milestone for our business.”

Our team also included Nick Woodmansey and Lilly Rogers.

Legal advice on the transaction was provided by Christian Wilson at Spencer West.

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