Do you want to calculate your company value easily and uncomplicated? First of all, it should be said that the rule of thumb that a company is worth three times its profit is a persistent myth and by no means a formula that makes sense for every company. It is too undifferentiated and simplifies the…

How Do I Value My Inventory? The question of whether the value of inventory should be considered in a company valuation is a frequently discussed topic. Inventory is an important part of the business and significantly influences a company’s operational processes and financial health. How can an inventory be valued? Three schools of thought: 1….

Technological progress has rapidly transformed the retail sector. The COVID-19 pandemic has further accelerated and intensified this trend. As the owner of a small retail business, you feel the pressure of growing online commerce and observe declining sales. Failure to adapt will leave you behind and cause you to miss the opportunities that digitization presents….

Imagine you want to quickly know what your company is roughly worth – without immediately hiring an expensive consultant. In such cases, simple rules of thumb offer an initial orientation: From revenue and profit multipliers to asset value. But caution: Each formula has its limitations and is not equally suitable for all types of companies….

What are Add Backs? For example, imagine an entrepreneur selling their company, but the numbers barely reflect their actual income. Add-backs – adjustments in company valuation – ensure better comparability with similar companies, also show a more realistic EBITDA value, and overall enable a fairer company value. Normalized vs. Run-Rate EBITDA – Typical Add-backs for…

Before a company is sold, buyers want to know exactly what they are getting into. This checklist provides a comprehensive overview of all documents and information that are examined during due diligence – legal, financial, business, and technological. The list may seem dauntingly long. Prepare the documents early. A structured due diligence not only increases…

Fundamentally, valuing a small business works the same way as valuing a large one. Generally, it’s less complex. However, there are a few things that make the valuation more challenging and that you need to know. Why is the Valuation less Complex? Size and diversification: small businesses have fewer business units, subsidiaries, and geographic markets…

Investors and buyers of companies carefully evaluate businesses before investing money. The following factors are crucial for a promising assessment of your company. Prepare thoroughly and demonstrate that your company can be convincing in these areas. What is the Profit Margin? Investors look for stable revenues and a healthy profit margin. Increasing sales and profits…

Basic valuation The basis of valuation is more or less identical for all companies. The Nimbo Company Value Guide provides you with useful background information and everything worth knowing about the topic. Calculation Example for an Online Shop Assumption: An online shop in Switzerland with up to five employees achieves a profit of 50,000 with…

What Factors should be Considered? The decision to sell the company property together with the company depends on a variety of factors. This includes whether the property is part of private or business assets, the strategic importance for the business, the company’s liquidity needs, tax considerations, alternatives to property disposal, current market demand and the…

Whether it’s machinery or market position – in production, different factors often count compared to service industries. Learn here how to analyze and strategically improve the most important value drivers of your business. Basic Valuation The basis of valuation is more or less identical for all companies. The Nimbo Company Value Guide provides you with…

Even a non-profitable company can possess substantial or strategic value. The choice of the appropriate valuation method depends heavily on the individual situation: on the asset structure, market opportunities, and the goals of the owners. A combination of several methods often provides the greatest informative value. Suitable Approaches and Methods to Help You Evaluate a…

Is the company to be sold as soon as possible? Then you probably only want to take measures that involve little effort and cost and can be implemented easily and quickly. Our list of suggestions is aimed precisely at this situation. The suggestions are particularly suitable for owners of small businesses who want to make…

The valuation of a franchise company – from the franchisor’s perspective – requires a practical approach that takes into account both proven financial metrics and the specifics of franchising. Whether preparing for a sale, taking on investors, or strategic planning, a realistic company value is crucial. What is the best way to proceed? Our recommendation:…

A company’s performance can be evaluated using a variety of key figures that reflect different aspects of the company. Take a look at the most important key figures that can be used to check a company’s performance: Revenue Growth How has the company’s revenue changed over a specific period – usually compared to the previous…

What is my startup worth? What do I need to consider and check in order to determine a reliable value, whether because I want to sell my company or because I want to invest in a startup? We will reveal the 10 most important criteria that you should definitely consider: In addition to these key…

Determine the market value of your company easily and straightforwardly by This approach is popular because of its directness and the use of market data, and is often used in company sales, financial reporting and legal valuation issues. The selection of relevant comparable companies and the interpretation of market data are crucial for the accuracy…

“How much is my software company really worth?” This question becomes particularly pressing when you want to attract an investor for the next round of funding or determine the optimal selling price for your company. In this blog post, you’ll learn which value drivers, besides revenue and profit, additionally influence the value of a software…

Basic valuation The basis of valuation is more or less identical for all companies. The Nimbo Company Value Guide provides you with useful background information and everything worth knowing about the topic. Calculation example for a wholesaler Assumption: A wholesaler with up to five employees achieves a profit of 50,000 with a turnover of 500,000….

How Do Income Capitalization Approaches Work? In a very simplified summary, the income capitalization approach is about This gives the present value of the company according to the income capitalization approach. The discount rate takes into account the timing of income in the future and the specific risk of the investment. Different Approaches to Income…

Evaluating a small business also requires thorough analysis and an objective approach. Avoid common mistakes and consider the following tips. This will help you make better decisions and minimize your risk when you want to invest in or acquire a company. Neglecting Due Diligence Overvaluing the Customer Base Failure to Consider the Company’s Financial Health…