Business valuation calculator for SMEs in South Africa
✔ Most current database for South Africa
✔ Based on real purchase offers
✔ Analysis of individual value drivers
✔ No registration necessary
✔ Immediate evaluation
✔ Free version available
Data status: January 2022 | 219 data points
We ask you about 30 questions about the company. You will receive a multi-page evaluation report by e-mail within 30 minutes.
Market data for South Africa
NIMBO provides more transparency in the SME succession market in South Africa. Through our Company Value Calculator, we ask hundreds of business owners in South Africa every month about recent purchase offers they have received, giving us a unique insight into how valuation multiples are evolving.
Current development of individual industries in South Africa
NIMBO updates its valuation multiples for individual industries in South Africa every month, providing the most up-to-date market data for SMEs.
⬤ Software / IT ⬤ Producing industry ⬤ Services ⬤ Gastronomy ⬤ Trade ⬤ Craft & Construction
EBITC multiples for companies with 6-25 employees in South Africa by sector
Company Evaluation Features
NIMBO has arguably the most comprehensive and up-to-date dataset, consisting of hundreds of current real purchase offers for SMEs.
Company and industry specific
The enterprise value takes into account factors that are particularly relevant for SMEs and the respective industry.
Online in 20 minutes
Complete a questionnaire in around 20 minutes and receive a comprehensive evaluation within an hour.
Confidential and anonymous
Your information will never be shared and other than your email address, you do not have to provide any contact information.
Free version available
There is an extensive free version to choose from.
Comprehensive and comprehensible
NIMBO’s evaluation report comprises 13 pages in the standard version and 6 pages in the free version. The valuation method is comprehensible and easy to understand.
Procedure of the company valuation
Answer questions about your company.
Duration: about 20 minutes.
Choose between the free and the more detailed evaluation.
Enter your email address
For sending the report we need an email address.
The NIMBO algorithm calculates the value of the company. The result will be sent to you by email within 30 minutes.
Contents of the Goodwill Report
What our users say
Company-specific value drivers
The Nimbo company valuation looks far beyond the mere financial figures. Since the mere consideration of the operating profit for the calculation of the company value would fall short, the NIMBO company value report goes further than the usual online valuations and analyzes a variety of qualitative factors. This includes an analysis of the company’s suitability for succession, its market position, its potential and its balance. Practice shows that these factors are decisive in the calculation of goodwill. That’s why in our 20-minute test, we ask the right questions about these value drivers and can make a more accurate assessment of current value and the potential to increase it.
Suitability for succession
If one wants to calculate the value of the company, an analysis of the dependence of the company on the owner is part of the process. From the point of view of investors, too much dependence is seen as a cluster risk. What is the impact on the company when the current owner leaves and all his experience, knowledge and relationships with customers, suppliers and business partners are no longer there? The Nimbo Goodwill Test therefore considers successor suitability in its analysis.
The company’s value is strongly dependent on its market position. Is the company active nationwide or even internationally? How replaceable is the company for the customers? Is an interesting niche being filled? Are there sustainable competitive advantages? A clear focus, excellent reputation and long-standing customer relationships are hard to copy and make a company unique and valuable.
The value of a company is not derived from past or present business performance, but from future prospects. Is the business model geared towards growth? What opportunities are available to the potential buyer? Are there attractive economies of scale? These questions are an important part of the company valuation.
In addition to strengths and opportunities, risks and dependencies must always be taken into account when calculating the value of a company. A balanced customer base, replaceable business partners and low dependence on individual employees reduce risk and increase value.
Valuation method used
Multiple method with own market data
The multiple (multiplier) method of evaluation is practical and easy to follow. NIMBO’s own up-to-date database allows a well-founded evaluation of SMEs in numerous countries. Company owners report to us purchase offers received for their companies. As a result, NIMBO has a unique data set of several hundred current valuation multiples at its disposal. The determination of your multiple is refined by the classification into the appropriate comparison group according to industry, company size, country and profitability.
Would you like more information about the Multiple Method in general? You can find them in our overview of valuation methods.
Adjustment of the multiple by company-specific value drivers
The next step is to adjust the valuation multiple of the peer group to factors that are specific to your company. This is based on empirically observed average effects on the level of purchase prices received and includes factors such as dependence on the owner, potential, risks and much more. We take these factors into account and, using our own database of real quotes for comparable companies, derive the score and show in the test report where your company stands within the range of observed multiples.
The role of the “EBITC” multiple in the calculation of goodwill
EBIT (earnings before interest and taxes) is the operating profit before interest and taxes. In the practice of business valuation, it is a very central ratio. In order to obtain a very first, rough estimate of the goodwill, it can be multiplied by an industry-specific multiplier (“EBIT multiple”). If the owner and the managing director are the same person, the result of this calculation is often distorted in the case of smaller companies by a remuneration that is not in line with the market. The wage in this case is self-determined, and the amount may depend on various factors. Depending on private needs, the current liquidity situation of the company or tax and other considerations, it may be too high or too low. This distorts the true earnings position of the company. The NIMBO database contains a large number of real purchase offers for small and medium-sized companies. A statistical evaluation of the NIMBO data material has shown that the consideration of the EBIT before deduction of the managing director compensation allows a significantly better prediction of the amount of the goodwill and a recoverable price than the EBIT. We have created the term “EBITC” for this purpose. (“Earnings before interest, taxes and CEO compensation”). The EBITC eliminates the need for a discussion about market-based compensation for the owner. The calculation of the company value according to the EBITC multiple method makes the companies more comparable and thus the result of the valuation more plausible.
How much time does the NIMBO company valuation take?
Depending on the industry and some other factors, the test comprises around 30 questions. It takes an average of 20 minutes to answer. The evaluation usually takes place 30-60 minutes after completion of the questionnaire. You will receive the report by mail.
Which companies are suitable for the NIMBO assessment?
The company value test is particularly suitable for established, especially owner-managed SMEs, with up to 100 employees. Expected values for the future should be comprehensible and realistic. The valuation is not suitable for companies in transition or with exceptionally high growth expectations. A positive EBIT is required. Even though an expected value can of course be used here, the test is only conditionally recommendable for startups.
What financial ratios do you need to provide for the valuation?
Required figures are representative turnover, earnings before interest, taxes and executive compensation (“EBITC”), (estimated) extraordinary income and expenses, financial liabilities and cash on hand. A large part of the questions are qualitative.
How reliable are the results?
You will get a first indication of the value of your company and will be sensitized for the relevant points that determine the value. The value is not identical with the price that can actually be achieved on the market. We will be happy to advise you free of charge on the correct interpretation of your results.
Data protection: What happens to my data?
The data is aggregated and used anonymously to improve the NIMBO algorithm. Upon request, the data will be deleted. Under no circumstances will your data be passed on to third parties.