The time has come. The company is to be sold and the company’s successor may be ready or should be sought. Now there is one more thing to do: calculate the company’s value. In this article we want to give you some tips.
Six methods – calculate company value
In practice there is no such thing as an objective company value. While founders who want to sell their company see not only the material assets but also the work they have invested in the company in the past, the buyer thinks about what he can achieve with the company in the future and how he can finance the purchase price. A total of 6 procedures for applying for companies can be found in practice.
- Net asset value method
- Liquidation value method
- Earned value method
- DCF method (discounted cash flow)
- Stuttgart process
- Practitioner procedure.
The procedures at a glance
The Net asset value method evaluates the business goods required for the business at their replacement prices and thus only shows an inventory of all goods in the company.
The Liquidation proceedings is triggered after the dissolution of a company or insolvency and represents the value that results from the sale of the asset items after deducting liabilities and liquidation costs.
At the Earned value method the future income, i.e. the company’s profit, is assessed. Subjective positions such as good management, customer base or company value can also be included in the evaluation of the success of the company as a whole.
At the Discounted cash flow method one uses the future payment surpluses instead of the future income.
The Stuttgart process is a combination process between earnings and net asset value, which is mostly used by the tax authorities to determine capital gains.
The Practitioner procedure Procedure is a simple and often used procedure and the last annual profit is multiplied by an industry-related rate.
Projektify price calculator for web companies
At Projektify we have created an algorithm especially for web companies based on the practitioner method and the income value method. This is how we calculate the profit for the next 12 months, the subjective potential of the project, the necessary investments, SEO and the website traffic. With the help of interviews and many tests, we have precisely weighted the weighting of the criteria and thus give you a way of calculating your company value.
Practical tip: Projektify price calculator
Nobody can make the decision about the price of your company for you. Only you can meet them! On Projektify you can view companies for free or hire your company. we are a nonprofit organization and want to promote corporate succession and start-ups in Germany and France. Because of this, our service is too completely free . S. check out our ads or post your web project with us for free ! Be sure to read the article as well Determine the value of a website can.
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