Company valuation creates orientation. Purchase price maximization is our goal.
The company valuation serves as a starting point for purchase price negotiations. As a rule, the so-called enterprise value is determined - i.e. the total value of the operative business, regardless of the financing structure. This value reflects what a buyer would pay for the entire company, including all debts and available liquid funds.
The actual purchase price for the shareholder is measured on the basis of the equity value - i.e. the value of the company less financial liabilities and plus excess liquidity. The difference between enterprise value and equity value is called equity bridge. It represents the bridge between the economic value of the company and the amount that ultimately arrives in the seller's account.
Special features in the valuation of SMEs
With over 20 years of experience in the SME sector, we at starkpartners know which special features and challenges must be taken into account when dealing with SMEs
Limited Data Quality
Historical figures are often not standardized - business plans and adjustments must be plausibly derived.
Personal Dependency
Essential success factors often depend directly on the entrepreneur - this increases the risk from an investor's perspective and requires adjustments in the valuation model.
Non-transparent Earnings Power
Private deposits, one-off expenses or non-market withdrawals must be converted into a sound EBIT figure (keyword: normalization).
Financing structure
Shareholder loans, atypical financing or silent participations influence the derivation of equity and cost of capital.
Low Diversification
High concentration risk (e.g. customer, product or supplier dependency) increases the business risk and is reflected in higher capitalization interest rates.
Transfer Succession Factor
The valuation must take into account whether know-how transfer and management succession are secured - central questions in the buyer's review.
Company value drivers
Value Drivers that Have the Greatest Impact on Company Valuation in the SME Context
What is your company worth?
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Our specialists
Thorsten Stark, Senior Partner
Visionary Entrepreneur with over 25 Years of Experience in Leadership, Corporate Planning, Engineering and Finance – Specializing in Transformations and Strategic Development.
Alexander Kögel, Senior Advisor
Experienced Manager and M Expert with a Focus on Turnarounds, Restructurings and Sustainable Growth Strategies.
Lars Stark, Associate Partner / Authorized Officer
M&A Specialist with a Focus on Medium-Sized Companies and Distressed Mandates - Experienced in Handling Complex Transactions in ICT, Automotive and Mechanical Engineering.
Avoid costly experiments and get the right partners on your side right away
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