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idea or only a kind of some feeling about the value of their company – but they do not know its actual market value.

Whether it's growth, succession, sale, or investment, without a realistic, data-based valuation, you will make the wrong decisions.

The difference between perceived and marketable value

Perceived value often arises from passion for what has been achieved so far, irritating media reports or free online calculators that only pull contact details from the internet.

Marketable value, on the other hand, is based on real facts, market analyses, sustainability, and future viability – in other words, on what a buyer, investor, or partner is actually willing to pay.

This value takes into account:

• Up-to-date and in-depth expertise on the players in the market.
• An intensive analysis of past performance,
• current and future profitability and liquidity,
• growth potential and competitive situation,
• risks and dependencies,
• as well as market trends and industry specifications.

Only those who reduce the complexity of the facts to a single value can see clearly. They can act strategically instead of groping in the dark.

Note: This is not a 5-minute task.

Why this is so crucial

1. Making strategic decisions:

Investments, expansion, or restructuring – these should always be based on value development and financial viability.

2. Preparing for succession or sale:

Those who know early on what their company is actually worth can take targeted measures to increase this value – and are better prepared when a sale or succession is imminent.

3. Negotiating on equal terms:

A sound valuation creates clarity and certainty and strengthens your position vis-à-vis investors, banks, or partners.

4. Value-oriented corporate management:

When the focus is on sustainably increasing the value of the company, employees, customers, and owners alike benefit in the long term.

5. Company acquisition:

The same requirements naturally apply on the buyer's side

Conclusion

The marketable value of your company is not just a number – it is the compass for your entire corporate strategy. It shows where you stand today and opens up a view of what is possible.

Do you know the real value of your company?
If not, now is the best time to change that.

➡️ I support entrepreneurs in recognising the true value of their company and increasing it in a targeted manner – feel free to contact me if you would like to know where you really stand.

Your SME strategy consultant and M&A deal maker,
for Europe with almost 30 years of real M&A experience

Dipl.-Wirtsch. Ing. (FH) Rolf Popp

#sme #strategy #succession #sellingcompany