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Business Valuation

Know the real value of your business.

We determine the economic value of a company using recognised methodologies.

EBITDA, market multiples, book value and discounted cash flows to provide a clear, objective view of the business’s current and potential value.

How much is your company worth? Why you should know before negotiating

The aim of a valuation is to understand what the company is worth, with clear assumptions, so you can negotiate with confidence. It is not about producing a figure to file away, but about having solid arguments when setting an entry or exit price, talking to a bank or reaching an agreement with a shareholder.

Remember that value and price are not the same: value is what the company is worth based on its results, cash flow and potential; price is what is ultimately agreed in a negotiation. The stronger the basis for the value, the better you can negotiate the price.

When to apply it

For decisions where value matters.

  • Buying or selling a company
  • Mergers
  • Shareholders joining or leaving
  • Financing
  • Finding investors
  • Wealth planning
  • Generational succession in a family business.
  • Incentive plans for executives or key employees.
  • Internal control: understanding whether the company creates or destroys value year after year.

According to the Instituto de la Empresa Familiar, 92.4% of Spanish companies are family businesses and generate 70% of private-sector employment, but only 29.3% have completed at least one generational transition. A timely valuation helps plan that transition using data and avoid conflicts.

Methodology

Recognised methods, explicit assumptions.

  • EBITDA multiples
  • Market multiples and comparables
  • Book value
  • Discounted cash flows
  • Conservative/base/ambitious scenarios
  • Sensitivities on sales, margin and WACC

Valuation methods, explained

EBITDA multiples

How it works
Operating earnings (EBITDA) are multiplied by a multiple appropriate to the sector and company size. It is the most widely used method in SME acquisitions and sales.

Market comparables

How it works
The company is compared with similar transactions and businesses to cross-check its value.

Book value and net asset value

How it works
The starting point is the balance sheet’s net equity, adjusted to the actual values of assets and liabilities.

Discounted cash flows (DCF)

How it works
We estimate the cash the company will generate in the coming years and discount it to today’s value using a discount rate (WACC) that reflects risk.

We always work with three scenarios (conservative, base and ambitious) and sensitivities for sales, margin and WACC, so you can see how value changes when assumptions change. That is why the result is a range, not a single figure.

Process

Step by step.

  1. 01

    Information checklist and kickoff

  2. 02

    Normalisations and comparables

  3. 03

    Scenario modelling

  4. 04

    Sensitivity analysis

  5. 05

    Report and presentation of results

Deliverables and limits

What you receive and how it helps

  • Valuation report with the value range and all assumptions explained.
  • Comparables table and a briefing of arguments for negotiation.
  • Sensitivity appendix and key considerations: what could increase or reduce the value.
  • Question-and-answer session to clarify the report and decide on next steps.
  • The result is a range, not an exact figure
  • It depends on the quality of the information provided

It helps you set an entry or exit price, talk to banks and agree on variable payments (earn-outs) on a sound basis. To be clear: it is not an audit, but professional judgement supported by data and explicit assumptions.

Frequently asked questions

It mainly depends on its EBITDA, sector, ability to generate cash and risk. There is no single multiple: that is why we combine several methods and give you a range with the assumptions explained.

Annual accounts for recent years, a provisional close for the current year, budgets or forecasts if available, and information on customers, debt and significant assets. We give you a checklist at the start.

Usually between 4 and 6 weeks from the point when we have all the information. At the kickoff meeting, we agree on the schedule and delivery date for the report.

No. Value is calculated using data and assumptions; price is agreed in a negotiation. The valuation gives you the arguments to negotiate that price.

Yes. All information is treated in strict confidence, which is particularly important in company acquisitions, sales or the admission of new shareholders.

We provide a tailored quote based on company size and scope. The first consultation is free.

What is your company worth?

Tell us the context and we’ll explain how we would approach the valuation.