Services · Company Valuation

    Company valuation: assessing your business value with rigour.

    Knowing your own company's value is the basis for every significant entrepreneurial decision — succession, sale, change of shareholders, investment offers or inheritance. Without knowing the value, you negotiate blind. A professional valuation creates the factual basis to decide with confidence.

    IGCP Capital Partners has been valuing owner-led companies in the DACH region for more than 20 years. With more than 100 supported transactions we know not just the methods but the actual market prices being paid in the current environment. We are 100% independent — and value without self-interest in the result.

    Free online calculator

    For initial orientation, our free business value calculator gives you a pro-forma estimate in two minutes — no registration required.

    The three valuation logics

    In practice three valuation logics are used, each answering a different question.

    Net asset value. What would the company be worth if all assets were sold individually and liabilities repaid? This method gives a floor value but ignores business model and the future.

    Income value and Discounted Cash Flow (DCF). What are the future earnings — discounted to today — worth? These methods reflect the company as a going concern and are the central yardstick for most SMEs. A plausible plan and an appropriate capitalisation or discount rate are decisive.

    Market multiples. What are buyers currently paying for comparable companies? Common multiples refer to EBIT, EBITDA or revenue and derive from comparable transactions in the sector. This method injects market reality.

    A detailed introduction to the three logics is available in What is my company worth?. A valuation is only robust when the methods converge into a consistent range.

    What really drives value

    Being methodically valued is one thing. Actually increasing the value is another. In practice a small number of factors disproportionately drive the value: sustainable earnings, low dependence on the owner, documented processes, a balanced customer base, a qualified second tier of management, and a plausible growth story.

    Which levers are particularly effective and how to address them in a structured way is described in Increasing enterprise value. The most important insight: value creation takes time. Those who work on the right levers one or two years before a planned transaction usually end up with more than they could win through tough price negotiations alone.

    Valuation as preparation for a sale

    A robust valuation is more than a number on paper. It is the basis for developing realistic price expectations, preparing negotiation positions and substantiating arguments later in the process. It also reveals where the company should be developed in the coming months to be better positioned at the time of sale.

    In preparing a succession or company sale, a valuation is therefore usually the first step. It provides the basis for deciding whether, when and how a sale process should be launched — and creates clarity long before any conversation with potential buyers.

    Tax and legal aspects of a valuation — for inheritance, gifts or changes among shareholders — are handled together with the client's tax advisor and lawyer. IGCP delivers the economic valuation and interpretation, not the tax or legal advice.

    Frequently Asked Questions

    Which valuation method is typical for SMEs?
    In practice the income value method or simplified DCF models and EBIT/EBITDA market multiples dominate for small and mid-sized businesses. Net asset value usually serves as a floor. Banks and investors typically expect several methods in parallel — a robust value range emerges from the combination, not from a single number.
    What does a company valuation cost?
    It depends on the purpose. An indicative value range for an initial standpoint check is significantly cheaper than a detailed valuation report for court or tax purposes. For sale preparation a robust indicative valuation is usually sufficient — the market determines the final price anyway. For a concrete quote we discuss occasion and depth in a non-binding first conversation.
    How long does a company valuation take?
    With complete data, we deliver an indicative valuation in two to four weeks. The driver is document quality: if annual accounts, management reports and a plausible plan are in place, it goes quickly. If numbers are missing or adjustments are needed, it takes accordingly longer.

    If you need a robust assessment of your company's value, talk to us confidentially and without obligation.