What is my business worth?

Almost every entrepreneur has a number in mind. It comes from the accountant, an industry colleague or a rule of thumb that was right ten years ago. Today it rarely is. That has less to do with the arithmetic than with what goes into it.

First comes the earnings figure a buyer sees

For a buyer, the profit in the accounts is only the start. The buyer recalculates. What would a salaried management team cost if the founder has paid themselves a token salary for years? Which costs are private? What was one-off? The result is usually normalised EBITDA, and that is the number actually negotiated. Whoever has done this sum beforehand walks into the conversation differently.

What moves the multiple

The multiple is argued over most and discussed least. Yet it comes down to one simple question: how secure are these earnings? A business with ongoing contracts, a broad customer base and a management team that works without the founder is valued higher than one with identical figures but three large customers and a boss who writes every quote personally.

In the processes we support, the pattern repeats: two companies with similar results end up at very different prices, and the gap almost always traces back to predictability, customer structure and dependence on the entrepreneur. Growth helps only when it is proven. A good story without numbers convinces no buyer.

Price does not follow profit. It follows the security of profit.

From Enterprise Value to cash in the account

The multiple gives Enterprise Value. The seller receives less. Net debt comes off, as do debt-like items such as provisions, and Net Working Capital must be delivered at a normal level. Then come the contract terms: with an Earn-Out, part of the price depends on future earnings, and a Vendor Loan defers part of it. Two offers with the same headline price can therefore end up far apart. Comparing offers means comparing structures, not just amounts.

The buyer makes the price

A strategic buyer who sees synergies can pay more than any financial investor. A management team pays what can be financed. An investment partner such as P4i Unternehmerkapital thinks in years, not quarters. Selling to the first serious bidder wastes that competition. That is why we approach several suitable buyers at once. It takes more effort, but it is the strongest lever a seller has.

What can change in two years

With twelve to twenty-four months of lead time, a lot can be changed. Report the numbers monthly and cleanly. Do not let the largest customer grow larger still. Build a second leader to take over quotes and customer relationships. Tidy up the contracts. Settle early what remains net after tax. None of this is cosmetic. It changes what a buyer is willing to pay.

An independent assessment at the start shows where the value lies and where it leaks away. It costs one conversation.