What does a company cost? Ultimately, a company's price is determined by supply and demand, because depending on the valuation method, the value of a company can fluctuate greatly.
In practice, opposing points of view of the parties involved may differ[FC1] from each other about the value of a company. The buyer wants to negotiate the lowest possible price, the seller the highest possible price.
The valuation of a company requires meaningful annual financial statements. Before a company valuation or value considerations can be calculated, the official balance sheet should be converted into a balance sheet without hidden reserves and the like. Which of the many valuation methods is suitable for your company depends strongly on the size and structure of the accounting system.
In practice, it is particularly common for SMEs to use a mix of relevant evaluation methods.
From the experience of many completed company sales and valuations, we have a broad database at our disposal. Our consultants are at your disposal for an initial discussion and a quick analysis.