To achieve the best deal for your company, you need to make sure that cash flow (EBITDA) and business value are optimal at the time of the sale. These two parameters are guaranteed to have a positive effect on the price you will receive for your company. Find out what else affects your proceeds directly or indirectly in this article.
We usually calculate the value of a company based on EBITDA – earnings before interest, tax, depreciations and amortisations – and the multiple. The multiple is the factor EBITDA is multiplied by. For example, if your company has an EBITDA of 850,000 euros and a 3.6 multiple applies, the estimated company value amounts to a little over 3 million euros. The multiple is based on several indicators, such as company size (number of FTEs), sector and recent business acquisitions. The Marktlink Multiple offers you a reliable indication of the value of your business safely, quickly and simply. To go from company value to purchase price, we take cash and debt items into account as well.