Definition : SME

SME is an acronym for "Small and Medium-sized Enterprises". The definition of an SME is a company with fewer than 250 employees and annual sales not exceeding 50 million euros.

According to INSEE, 99.9% of companies in France are SMEs.

How to evaluate an SME? 

The ideal method for valuing an SME does not exist. The methods used for valuation must be adapted to each different SME activity. Several factors can be taken into account, such as sales growth or capital intensity. Generally, 3 methods are used, to obtain a final valuation via a weighted average. Our XVAL consultant will advise you on which methods to use when having your SME valued.

It is important to note that, depending on the sector, there are specific practices and methods of valuation that are often accepted as the norm by the players in the sector.

There is no ideal method for valuing an SME. The methods used for valuations must be adapted to each different SME activity.

Why evaluate an SME?

Valuing your SME can be done for several reasons. It can be at the time of a sale of company, at the time of a negotiation of a financing with its bank or to prepare its succession.

Thanks to XVAL's valuation service, the manager or the partners of an SME can receive in 3 days a detailed and documented valuation study allowing them to rely on this valuation to carry out their growth or transfer project in the best way.

If you wish to have your SME evaluated, do not hesitate to contact one of our experts: contact a XVAL consultant.