Service 03 · Valuation

Company valuation: the methods explained.

Market-based valuation via EV/EBITDA multiples and DCF — the defensible foundation for every negotiation. We explain the methods and show what really drives the value of your company.

What we do for you

Multiples method

The market standard in the Mittelstand: enterprise value is derived from EBIT or EBITDA multiplied by a sector- and size-dependent factor. Fast, market-based and the basis of most negotiations — our multiples come from real transactions.

Earnings value & DCF

The capitalised-earnings and DCF methods derive value from future earnings or cash flows. They are more involved, but with stable cash flows and growth plans they are the more precise basis — and the standard in IDW S1 expert opinions.

What really drives value

Beyond the formulas, value drivers decide: recurring revenue, low owner dependence, a diversified customer base and clean figures. This is exactly where good preparation starts.

At a glance
  • Real sector multiples, not textbook figures
  • Multiples, earnings-value and DCF methods
  • Free initial valuation within 24 hours
  • A defensible basis for any negotiation
Frequently askedFAQ

Company valuation

In the Mittelstand mainly the multiples method (EV/EBITDA), the capitalised-earnings method, DCF and — as a floor — the net-asset method. In practice several methods are combined.
A normalised earnings figure (EBIT or EBITDA) is multiplied by a customary sector multiple. The factor depends on sector, size, growth and risk — less net debt gives the equity value.
It varies widely — from low single-digit factors in capital-intensive sectors to double digits in software. Our multiples are based on real DACH transactions; the free valuation gives your range.
A valuation gives a well-founded range, not a single point — the final price emerges in negotiation. For orientation, a negotiation basis and succession, a solid initial valuation is enough in the vast majority of cases.

Let’s talk about your life’s work.

A confidential first conversation is free and non-binding — we listen and assess your situation.