3x sales = company value?
Applying the 3x revenue model to your business The 3x sales model is a very easy-to-use method for company valuation. It is based on the assumption that the value of a company is three times its annual turnover. Here’s a quick guide on how to apply this model to your business. Relevance of the method…
3x EBITDA = enterprise value?
How do you calculate EBITDA? So erhalten SIe den Wert: Annual profit or loss + Tax expenses– Tax refunds+ Interest expense– Interest income – Cleanups = EBIT (earnings before interest and taxes) + Depreciation on property, plant and equipment+ Amortization of intangible assets= EBITDA (earnings before interest, taxes, depreciation and amortization of intangible assets) What…
Guide to evaluation methods
The four most important methods for calculating the enterprise value for small and medium-sized companies are the multiple method, the asset value method, the earnings value method and the DCF method. Here’s what you should know about each method. Simply explained and with examples. Related topics : Use our current online company valuation for a…
Guide for the sale of a company
Here we compile everything you need to know and consider about selling a company that is important from an entrepreneur’s point of view. The site is continuously expanded and updated. What needs to be taken into account? Which mistakes should be avoided? What affects the price? When and in what ways does it make sense…
Business Value Guide
Here we present everything you need to know about calculating company value that is interesting from an entrepreneur’s point of view. We are continuously expanding the site. What does the current market environment look like? How useful are online company value calculators? Which valuation method is right for my company? What mistakes should I avoid?…
Retail – increasing value through digitalization?
Technological advances have changed retail in a short period of time. Corona has further accelerated and intensified this trend. As the owner of a small retail business, you are feeling the pressure of growing online commerce and seeing your sales decline. If you don’t react, you will be left behind and miss out on the…
Should I sell my business now?
Should I sell my business? Use our considerations and food for thought to make an informed decision about whether or not to sell your business.
What critical factors do investors and buyers pay attention to when evaluating a company?
Investors and buyers of companies carefully evaluate companies before investing money. These 9 factors are crucial for a successful company valuation. Prepare thoroughly and show that your company can excel in these areas. What is the profit margin? Investors look for stable revenues and a healthy profit margin. Increasing sales and profits are a good…
The logic behind the 3x profit company valuation
The 3x profit company valuation is a very simplified form of company valuation and means: profit multiplied by 3 = company value. Basically, this type of assessment is based on two main components: Choose profit metric Choosing the right profit metric (e.g. net profit, EBITDA or operating profit) is a crucial factor. Each of these…
What is different about valuing small businesses?
Basically, the valuation of a small company works the same way as that of a large one. In general, it is less complex. But there are a few things that make the evaluation difficult and that you need to know. Why is the assessment less complex? Size and diversification: small companies have fewer business units,…
7 Mistakes Buyers Commonly Make When Evaluating a Small Business
Valuing a small business also requires thorough analysis and an objective approach. Avoid the common mistakes and pay attention to the following tips. This will help you make better decisions and minimize your risk when investing in or acquiring a company. Neglecting due diligence Overvaluing the customer base Not considering the financial health of the…
Selling the company with or without property?
What factors should be taken into account? The decision to sell the company property together with the company depends on a variety of factors. This includes whether the property is personal or business assets, strategic importance to the business, the company’s liquidity needs, tax considerations, alternatives to property disposal, current market demand and value of…
The 10 key criteria for evaluating a startup
What do I have to consider and check, be it to determine a serious value for my own startup or because I want to invest in a startup? In addition to these key criteria, each of which could become a killer criterion, the following, more unconventional aspects should also be taken into account and reconsidered…
How do I increase the business value quickly and easily before selling a company?
Should the company be sold as soon as possible? Then you probably only want to take measures that involve little effort and cost and can be implemented quickly and easily. Our list of suggestions is aimed at exactly this situation. The suggestions are particularly suitable for owners of small businesses who want to make their…
Add backs for company valuation
Add-backs are adjustments to the company valuation that are made to get a fairer result. The types of add-backs that apply may vary on a case-by-case basis depending on the company’s individual circumstances. The most common types of add-backs are:
How do you value a company that is not profitable?
Evaluating a non-profitable company requires close analysis of various financial metrics to identify potential opportunities or threats and make informed decisions. Conventional valuation methods based on profit or cash flow metrics are not sufficient here or, such as the multiple method, are completely unsuitable. Some approaches and methods that can be considered when valuing a…
Valuation of franchise companies
What is different when valuating a franchise business compared to a regular business? What is to be considered?
Which key figures provide information about the performance of a company?
The performance of a company can be assessed using a variety of key figures that reflect different aspects of the company. Here are some of the key figures that can be used to examine a company’s performance: These metrics are not exhaustive and the meaning may vary depending on the industry and business model. The…
How do you value a small business?
Fewer employees, fewer areas, clearer assets and cost structure. These are just a few points that make valuing a small business easier and less complex. Nevertheless, there are some points to consider. Transferability Is the company dependent on the current owner for all matters? It would significantly reduce the value if it is uncertain whether…
Market value approach for business valuation
In very simplified terms, this procedure is about This approach is popular because of its directness and use of market data and is often used in corporate sales, financial reporting and legal valuation issues. The selection of relevant comparable companies and the interpretation of market data are crucial for the accuracy of the valuation. Two…
