Frequently asked Questions
F: What is
the price I can achieve in selling my business?
A: The Enterprise Value of a company will be calculated
based on the expected cashflows in the future. Many different methods
are available. For a profitrate of 15% on equity usually the multiples
on EBIT (Earnings before interest and tax) will be depending on the
growth potential in the range of 5 to 9. The purchase price (value of
equity) is Enterprise Value minus debts plus nonoperating assets.
On the other hand the value of a business is as high as someone is
prepared to pay for. For declining markets possibly no buyer
will be found.
For companies in special situation (lack of liquidity) specialized
investors are willing to invest if the situation is understandable and a
consistent plan for the future is available.
F: I want
to grow my business by acquisitions?
A: Acquisitions can be done purely opportunistic in case
opportunities appear. To strenghten certain market sectors or to access
new technologies it is advisable to take an active approach to potential
acquisitions.