As a member of the expert committee of Finance magazine, we, together with other renowned consulting forms, determine the industry-typical EBIT and sales multipliers for the company value of SMEs. The basis for this contribution are the company-specific multipliers, which we actually determine in the market during the course of our consulting activities.
The assessment of the company takes place directly in the market in the form of an anonymous bidding procedure. Based on anonymous actual and target figures for income statement and balance sheet (pursuant to the IDW Standard S1), the interested parties submit an offer for the company without knowing its identity. Only the industry in which the company is active is disclosed.
The finance mathematical assessment basis of the valuation can be freely chosen by the potential buyers (EBT, EBIT, EBITDA, free cash-flow or transaction volume) and is intentionally not made mandatory. Neither is the time period the assessment is based on (actual, planned or mean). As a result, the assessment bases of all conventional market methods are included in the determination of the company-specific value.
We have been working with this method very successfully for several years, which clearly differentiates itself from older methods and replaces the finance mathematical value with an actual, stable market value.