I receive a purchase offer based on multiples but don't understand whether the multiple is appropriate.
I have two valuation opinions that diverge by 40% and don't know which is correct.
I want to have my company valued, but the valuation firm doesn't know my industry.
I'm negotiating a purchase price and need robust arguments for my price expectation.
Does this sound like your situation?
Let's clarify in a free initial consultation whether and how we can help.
Context
The four standard methods at a glance
Business valuation uses four core methods: (Discounted Cash Flow) values future cash streams, multiples compare with market transactions, the earnings value method capitalises sustainable earnings, and the asset value method sums up asset values. Each method has strengths and weaknesses. In practice, at least two methods are combined to determine a valuation range.
In regulated industries (energy, concession holders), sector-specific valuation approaches are necessary that account for regulated revenues and concession terms.
Our Approach
Our valuation approach
01
Financial analysis
Cleansing and normalisation of financial metrics: one-off effects, owner adjustments, working capital analysis.
02
Method selection
Selection of appropriate valuation methods based on industry, business model and transaction context.
03
Sensitivity analysis
Calculation of valuation ranges with variation of core parameters: growth, margin, discount rate.
04
Valuation opinion
Transparent opinion with method presentation, assumptions, sensitivities and recommendation.
What You Receive
Financial analysis with normalisations
Multi-method valuation opinion
Sensitivity analysis and ranges
Negotiation support for price discovery
Results & Evidence
Typical valuation results
2-3
Methods per opinion
20-40%
Typical valuation range
5-8x
EBITDA multiple range (DACH)
< 3 wks
Opinion turnaround
Ranges dependent on industry, size and earnings profile.
What happens if you do nothing?
What happens without sound valuation?
Overpayment: Buyers without their own valuation rely on seller figures and systematically overpay.
Undervaluation: Sellers without an opinion give away value because they don't know their own position.
Negotiation disadvantage: Without robust valuation, the argumentation basis for price negotiation is missing.
Wrong structure: Without understanding value components, the wrong transaction structure is chosen.
Frequently Asked Questions
Frequently asked questions about valuation methods
Further Reading
You might also be interested in
Further reading
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