Why might my company's valuation differ from the estimate provided by this tool?

This tool provides an indicative valuation based on financial inputs and sector benchmarks. In a real transaction, buyers also assess qualitative factors such as customer concentration, recurring revenue quality, management independence, competitive positioning, intellectual property, growth visibility and risk profile. These elements can materially increase or reduce the final multiple.

How accurate is this business valuation?

This valuation is indicative and designed as a strategic starting point. It helps founders understand their likely valuation range, compare performance with sector benchmarks and identify the levers that may improve value before a transaction. A formal advisory valuation would also include normalized EBITDA analysis, quality-of-earnings review, working capital assessment and buyer-specific adjustments.

What is IMERGEA and how can they help increase the value of my business before a sale?

IMERGEA is a boutique cross-border M&A advisory firm based in France. Beyond estimating a company's value, IMERGEA helps business owners identify the operational and financial levers that can increase attractiveness to buyers and improve the potential selling price. The goal is not only to compute a number but also to indicate what should be improved before entering a transaction process. IMERGEA also offers a Blue-Chip Benchmarking tool at https://imergea.com/blue-chip-financial-benchmarking.html to compare a company against listed sector leaders and identify practical actions that may enhance value before a buy-and-sell process.

Business Valuation Calculator for SMEs | 6 Methods

Company

Financials

Balance Sheet

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Company Information

Privacy: We retain only your industry, valuation range and email for follow-up. No company names or detailed financials stored. Deletion can be requested by sending an email to : info@imergea.com

Industry *

Geographic Region *

Regional conditions influence multiples (+0% to +25%)

Number of Employees *

Used for Revenue/Employee benchmark comparison

Customer Retention Rate (%)

High retention (>80%) increases multiples

Intellectual Property & Proprietary Assets

Common Questions

What valuation methods does this tool use? +

Six industry-standard methods: EBITDA Multiple (primary M&A metric), Revenue Multiple (useful for high-growth businesses), DCF (discounts future free cash flows to present value), Asset-Based NAV (assets minus liabilities), Market Comparables (P/E and P/S of listed peers, discounted ~30% for private status), and Liquidation Floor (forced-sale asset recovery). The consensus corridor is the average of the four going-concern methods ±15%.

What is a realistic EBITDA multiple for an SME? +

SME EBITDA multiples typically range from 3× to 8×, versus 6–15× for listed companies. The gap reflects illiquidity, key-person risk and customer concentration. Technology and healthcare command the highest multiples (6–12×); construction and retail the lowest (3–5×). Growth rate, customer retention, IP strength and geography all adjust the base multiple in this tool.

Is the result an enterprise value or an equity value? +

The tool computes enterprise value (EV) the total value of the business including debt. To get equity value (what shareholders receive at closing), subtract net debt: Equity Value = EV − Total Debt + Cash. In M&A negotiations, price is almost always quoted as EV; the debt/cash adjustment happens at closing.

How does geography affect the valuation? +

Geography adjusts the going-concern methods via a regional premium reflecting buyer universe depth and comparable transaction exit multiples: North America +25%, Europe +20%, Asia +15%, Middle East / Japan +10%, Africa 0% (base). The liquidation value is deliberately excluded from this premium forced-sale asset recovery is determined by local physical asset markets, not M&A market conditions.

What is Debt/Assets and why does it matter for valuation? +

Debt/Assets (total liabilities ÷ total assets) measures what proportion of the business is funded by creditors vs. equity. Below 25% is conservative; 25–45% is typical for most sectors; above 55% signals elevated risk. Buyers use it to assess deal structure: a high ratio shrinks the buyer pool (fewer can afford the acquisition), compresses multiples and often triggers seller financing requests. This tool benchmarks your Debt/Assets against your sector peers and flags excess leverage as a valuation risk.

How accurate is this valuation? +

This tool provides an indicative range based on aggregated sector data and the inputs you provide. It does not replace a formal advisory valuation, which includes normalised EBITDA analysis, quality-of-earnings review, management interviews and buyer-specific adjustments. Treat the output as a data-informed starting point , useful for board discussions, shareholder alignment and preliminary M&A positioning.

Key Financial Data

Provide average figures for the last 3 years. Values in millions (e.g. enter 5 for €5M).

Average Annual Revenue *

€M

Gross Margin (%) *

Benchmarked against sector peers

Average EBITDA *

€M

Earnings before interest, tax, depreciation & amortisation

Average Net Income *

€M

Average Free Cash Flow *

€M

Cash after capex, drives the DCF calculation

Historical Revenue CAGR (%) *

Projected FCF Growth Rate (%)

Annual growth applied over the 5-year DCF projection period

Terminal Growth Rate (%)

Long-run perpetuity rate after year 5 , typically 1.5%–3% (GDP-linked)

Balance Sheet

Enter the asset breakdown : total assets are computed automatically. Values in millions.

Asset Breakdown

Powers the asset-based and liquidation valuations with precise recovery rates per asset class.

Cash & Equivalents

€M

Accounts Receivable

€M

Inventory / Stock

€M

Equipment & Machinery (PPE)

€M

Real Estate / Property

€M

Intangible Assets (Patents, Goodwill)

€M

Total Assets (auto-computed) €0.00 M

Liabilities

Total Liabilities *

€M

Get Your Results

Email Address *
Results will also be emailed to you

The generated valuation is purely indicative and does not replace formal financial advice. I agree to be contacted about IMERGEA's advisory services.

Your Company Valuation Results

Based on the financial data you provided

Estimated Company Value

—

Average of EBITDA, Revenue, Asset & DCF methods ± 15%

Valuation Corridor | All 6 Methods

Each method shown to scale with ±15% whiskers. The dashed band is the consensus corridor average of EBITDA, Revenue, Asset & DCF (±15%). Market Comps and Liquidation are shown for context but excluded from the corridor: Liquidation is a floor, Market Comps are noisy for private SMEs.

EBITDA Multiple

—

Multiple of — applied to average EBITDA.

Why it matters: Primary M&A metric. Compares profitability independent of capital structure.

Revenue Multiple

—

Multiple of — applied to average revenue.

Why it matters: Values top-line independently of margin, common for growth-stage companies.

DCF Method

—

Discount rate — · FCF growth — · terminal — · 5-yr projection.

Why it matters: Most rigorous for predictable businesses. Brings future cash flows to present value.

Asset-Based (NAV)

—

Total assets minus liabilities, adjusted for region.

Why it matters: Book-value floor. Relevant for asset-heavy sectors and holding companies.

Market Comparables

—

P/E & P/S of listed sector peers, discounted for private status (P/E & P/S).

Why it matters: Anchors value in what comparable public companies trade at.

Liquidation Floor

—

Recoverable asset value in a forced-sale scenario, net of liabilities. Uses per-asset recovery rates ().

Why it matters: Absolute minimum , critical for lender negotiations and downside risk.

Value-Creation Levers

Your KPIs benchmarked against sector peers from the IMERGEA Blue-Chip Benchmarking dataset. For each gap, three scenarios show the implied EBITDA lift and valuation impact using your industry multiple.

Next Steps for a Formal Valuation

This estimate uses aggregated sector data. A full advisory mandate includes management interviews, normalised EBITDA, quality-of-earnings analysis, deal structuring and negotiation support.

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Business Valuation Calculator for SMEs and Mid-Market Companies

Company Information

Key Financial Data

Balance Sheet

Get Your Results

Your Company Valuation Results

Estimated Company Value

EBITDA Multiple

Revenue Multiple

DCF Method

Asset-Based (NAV)

Market Comparables

Liquidation Floor

Value-Creation Levers

Next Steps for a Formal Valuation