Definition : SME

Any company with fewer than 250 employees and sales not exceeding 50 million euros is defined as a "Small and Medium-sized Enterprise". 

How to value an SME?

As each SME operates in different sectors, it is important to combine several valuation methods. A weighted average will then be obtained and used to determine the final valuation. Usually, the 3 valuation methods used are the following: 

- by comparison

- by performance value

- by asset value 

Why value an SME?

Two types of configuration are possible when a manager or his associates request a valuation of an SME: a regular estimate, in order to follow the creation of value that it realizes, or estimates within the framework of exceptional situations (purchase / sale of the SME, request for bank financing, estimation of the patrimony, preparation of the succession). 

The strength of a XVAL valuation is the delivery of a detailed and documented report that justifies the methods and assumptions used (coefficient, EBITDA restatement...) which will be the basis for discussions with the buyer, the banker...

You wish to have your SME valueddo not hesitate to contact one of our experts: contact a XVAL consultant