Business valuation

Do you know the value of your company?

For most entrepreneurs it is their largest asset, yet the one whose value they know least. We value the way buyers and investors calculate, and show which levers make the value grow.

5Methods compared
26Criteria from the BASE Check
4Levers of value development
Not only for a sale

A valuation is like taking pulse and temperature: a snapshot of where you stand. Anyone who looks at what drives value quickly sees that more than revenue and profit counts.

Prepare a transaction

Anyone who wants to sell, hand over shares or raise capital should know their own value before the first buyer or investor sits at the table.

Determine where you stand

Where does the company stand today, what drives its value, and where is value left on the table? The basis for structured company development.

Align shareholder expectations

Before a transaction, but also for shared priorities and goals: a transparent valuation brings all shareholders to the same page.

300%Range between offers for the same company, based on the same figures.
Why valuations differ so widely

Buyers do not pay for one year's earnings, but for their quality.

How reliably do the earnings repeat, how fast do they grow, and do they hold up without today's owners? That is exactly what decides the multiple and, with it, millions.

01

Quality of earnings: recurring revenue, stable margin, independence from individual customers and people.

02

Market position: a unique offering, growth and a niche that competitors cannot easily attack.

03

Competition in the process: Those who talk to several suitable buyers achieve a different price than with one.

The question of value does not arise only at the sale. Those who know their value levers develop their company in a more structured and healthier way. They make decisions that still pay off in five years.

The principle

What determines company value

Whether multiple, DCF or asset value: each method describes value in its own way. We use all those that your company's figures support. Behind them are always the same influencing factors.

Market & industryGrowth, barriers, rulesDeal climateBuyer interest, price levelUnique positionUSP, recurring revenueEarnings powersustainable earningsGrowth & planningwhat will be earnedTeam & executionsecond tier, track recordRisksDependencies, figures, AI substitutionSizeDiscount for small firmsCompanyvalueMarket & industryGrowth, barriers, rulesDeal climateBuyer interest, price levelUnique positionUSP, recurring revenueEarnings powersustainable earningsGrowth & planningwhat will be earnedTeam & executionsecond tier, track recordRisksDependencies, figures, AI substitutionSizeDiscount for small firmsCompanyvalue
Value is not the same as price. A specific buyer's synergies, competition in the process and the deal structure (such as an earn-out or reinvestment) decide the price. We show both separately so that you know what is being negotiated.
Our approach: the BASE Check

Five categories, 26 criteria – each measured against the industry average

We capture the influencing factors systematically in the BASE Check and give them special weight in every method. Zero stands for an average competitor. Those who are at zero everywhere receive the median multiple of their industry. Every strength and every weakness thus becomes a statement about value.

Business environment

Growth, barriers, regulation and balance of power in the industry.

Investor environment

Transactions, valuation level, interest from strategic buyers and investors.

sets the frame

Business Proposition

Problem, unique position, business model and potential through AI.

Business Execution

Track record, sales, product, processes and team.

Finance

Growth, earnings quality, costs, cash and balance sheet.

determines the position

More about the BASE Check: BASE Check – positioning, valuation and roadmap

Our system

Four steps – every valuation the same, every one traceable

Every valuation follows the same calculation path so that every result can be explained and compared.

01

Understand the market

What do buyers pay in your industry? Comparable transactions give the range of multiples, the anchor of every valuation.

02

Position the company

The BASE Check assesses 26 criteria, measured against the average competitor. From this follows where in the range your company stands today.

03

Clarify risks

Some issues cost value regardless of everything else: a dominant customer, dependence on the owner, AI risks, unclear figures. We name them and show how to solve them.

04

Determine the value

A range as wide as the evidence is uncertain, cross-checked with DCF and other methods so that nothing hangs on a single method.

The methods

Not calculated with multiples alone

Each method illuminates value from a different angle and has its limits. We use what your company's figures support and lay the results side by side.

+
–
Lead method

Transaction multiples

What buyers in your industry have paid for comparable companies.
Close to the market, immediately understandable for buyers
Comparable transactions are rarely exactly comparable
Cross-check

DCF – discounted cash flows

The value of all future cash surpluses, discounted for risk.
Reflects your individual planning and development
Reacts sensitively to plan assumptions and discount rate
Cross-check

Individual compar­able transactions

Selected deals with a similar business, similar size, similar buyer.
Shows what a particular type of buyer is willing to pay
Few data points, often published incompletely
for stable earnings

Earnings multiple (P/E)

Value as a multiple of sustainable profit after tax.
Simple and easy for shareholders to understand
Largely ignores financing structure and growth
for high asset base

Asset value

The value of assets less debt.
Robust lower bound, important for real estate and equipment
Does not capture customers, know-how or earnings power
Summary19.025.0 · mid 22.0Transaction multiples15.529.5DCF17.028.0Comparable transactions16.027.0Earnings multiple15.023.0Asset value7.511.051015202530Company value in €mlikely rangeRange Illustrative example: industrial services company, €3.1m EBITDA

The value lies in the interpretation

Five methods deliver five ranges. What matters is reading them correctly:

  • Why is the DCF higher than the market? Is the plan too ambitious, or is the company better than average?
  • Which type of buyer pays more, and is that value or already price?
  • Where is the reliable lower bound below which nobody should sell?

This assessment is our strength: partners who have built and sold companies themselves, and a calculation path that explains every deviation.

Try it yourself

Your value lies within a range – and it can be moved

Using an owner-managed industrial services company with around €3.1m EBITDA as an example. Select levers and see how the position in the range and the value change.

Multiple in the industry (EV / EBITDA, comparable transactions)lower end5.0xIndustry median7.0xupper end9.5xToday Multiple in the industry(EV / EBITDA, comparable transactions)lower end5.0xIndustry median7.0xupper end9.5xToday

Illustrative example, all figures freely chosen

Earnings (EBITDA)
€3.1m
Multiple
7.1x
Company value
€22.0m

Increase earnings

Pricing discipline in service, more efficient processes, new revenue, also through AI.

EBITDA €3.1m → €3.6m

Improve position in the range

More recurring revenue, growth above the market, a visible unique position.

better BASE scores → higher multiple

Reduce discounts

A second management tier instead of owner dependence, reporting that a buyer can take over.

Buyers have to discount less

In case of a sale: the right buyer, the right time

Strategic buyers competing, a good market window.

affects the price, not the value
Orchestrating company value

A valuation is not a report for the drawer, but the starting point

The valuation becomes a roadmap: each stage shows which lever works, how much value it creates and which options it opens. Each stage pays off on its own. A sale is one possibility, not a prerequisite.

Lever 1 · Earnings

Increase earnings

Margin, efficiency and new revenue, structurally built so that a buyer believes it.

Lever 2 · Multiple

Improve position in the range

Every better score in the BASE Check moves your company up in the range.

Lever 3 · Risk

Reduce discounts

Resolve dependencies, make figures and governance verifiable before the buyer asks.

Lever 4 · Next step

The right step, the right time

The next stage of development (growth, acquisition, succession) or a sale: then to the buyer group with the highest range, in the right market window, with competition in the process.

AI and company value

The field is shifting – without an AI strategy you get thrown off course

AI is not a premium you simply add on top. It acts on the factors that determine value, and thus in every method, not only in the multiple.

EarningsEfficiency and new revenue increase sustainable earnings.
Growth and planIn the DCF, future cash flows rise once execution is proven.
Unique positionData and processes that competitors cannot copy strengthen the position in the range.
RiskThose who become replaceable or use AI without control receive discounts in every method.
−1.0x0No AI−0.5x1Firsttrials±0.0x2Used indaily work+0.4x3Embeddedin processes+0.8x4Newrevenue+1.3x5AI in thebusiness modelBuyers' expectation today
Illustrative: premium and discount on the multiple per AI stage. What buyers expect today is standard tomorrow. The zero line moves to the right, and nobody knows how fast.

With the AI Check we measure which stage your company is at and what that means for its value.

Business valuation in four variants

As deep as your decision requires

From a quick look at the value to a roadmap for value development. You choose what your situation needs.

Simple analysis

Pure desktop analysis
  • Research from public sources, databases and your annual accounts
  • Valuation based on the transaction multiples of your industry
  • Value range with the most important value drivers and discounts
  • Workshop with expert panel
  • Roadmap for value development
Enquire
With roadmap

Strategic evaluation

Valuation and value development
  • Everything from the simple analysis
  • BASE Check with all 26 criteria
  • Workshop with owners, management and an expert panel of our partners
  • All viable methods compared
  • Roadmap: which levers create how much value and what they cost
Enquire

AI Impact

What AI means for your value
  • AI Check: which stage your company is at today
  • Opportunities: efficiency, new revenue, hard-to-copy data and processes
  • Risks: replacement of the offering, uncontrolled use
  • Impact on earnings, multiple and value range
Enquire

Valuation report

In writing, for banks
  • Valuation using all suitable methods
  • Normalization of earnings and bridge to the value of the shares
  • Written, traceably documented valuation report
  • For banks and financing partners
Enquire
Frequently asked questions

What entrepreneurs want to know about valuation

Why a range and not an exact figure?

Because every buyer calculates differently and not every assumption is equally well supported. An honest range shows where the realistic negotiating corridor lies. The better the evidence, the narrower it becomes.

Which variant suits me?

For a first assessment of where you stand, the simple analysis is usually enough. If you want to develop the value in a targeted way, the strategic evaluation with our expert panel leads to the roadmap. If the main question is what AI means for your business and your value, AI Impact is the right choice. If you need a written result for your bank, we prepare a valuation report. We clarify this together in the intro call.

Why several methods?

Every method has blind spots. Only in comparison does it become clear whether a value is supported by the market, the plan or the assets, and where the discussion with a buyer or investor will start.

Which documents do you need?

Public sources are enough for a first assessment. For a robust valuation, annual accounts for the last three years, a business plan and a conversation with you and your management help.

What is the difference between value and price?

Value is what your company supports on its own strength. Price emerges in the negotiation: with a specific buyer's synergies, competition in the process and the deal structure. We show both separately.

Do I have to want to sell?

No. Many entrepreneurs use the valuation to prepare strategy, succession or financing, or to know which values are still being left on the table.

What is your company worth?

In a non-binding intro call we clarify which valuation fits your situation and which levers are worth pulling.

Book an intro call