Learn the main methods to calculate your company's real value and which factors most influence the final sale price.
The question every business owner asks
It is the most important and, at the same time, the most difficult question to answer: how much is my business worth? Whether you are thinking about selling, seeking an investor partner, or simply planning for the future, knowing the real value of your business is essential.
The problem is that there is no single number. A company's value depends on the valuation method used, the market context, and above all, what a buyer is willing to pay.
The 3 most commonly used valuation methods
1. EBITDA Multiples
This is the most common method in SME transactions. It consists of multiplying EBITDA (earnings before interest, taxes, depreciation, and amortization) by a multiple that varies by sector.
For example, if your company generates an EBITDA of €500,000 and the sector multiple is 5x, the estimated value would be €2,500,000.
Typical multiples in Spain in 2026 range between:
- Technology: 8x - 15x EBITDA
- Professional services: 5x - 8x EBITDA
- Manufacturing: 4x - 7x EBITDA
- Retail: 3x - 6x EBITDA
- Hospitality: 3x - 5x EBITDA
2. Discounted Cash Flow (DCF)
This method projects the company's future cash flows and discounts them to present value using a rate that reflects business risk. It is more sophisticated and is especially used for companies with high growth potential.
It is the preferred method for investment funds and institutional buyers, as it allows valuing not only what the company generates today, but its future potential.
3. Adjusted net asset value
This consists of calculating the net value of the company's assets, adjusting their book value to real market value. It is useful for companies with many tangible assets (real estate, machinery, inventory).
However, this method does not capture the value of intangible assets such as brand, client portfolio, or team know-how.
Factors that increase your company's value
Beyond the method used, there are factors that make your company worth more (or less) than expected:
- Recurring revenue: Long-term contracts, subscriptions, or loyal customers significantly increase value
- Independent team: If the company operates without the owner's daily presence, it is more attractive to buyers
- Client diversification: Not depending on a single large client reduces perceived risk
- Sustained growth: 3 consecutive years of revenue and profit growth
- Documented processes: Standardized operations facilitate transition
- Growing sector: Being in a sector with positive outlook raises multiples
Factors that reduce value
- Founder dependency: If everything depends on one person, the risk is high
- Client concentration: A client representing more than 30% of revenue
- Pending litigation: Any legal contingency reduces value
- High debt: Directly affects the net value of the transaction
- Disorganized accounting: Generates distrust and delays in due diligence
When is the best time to value your company?
Many business owners wait until they want to sell to know their company's value. This is a mistake. Knowing the value in advance allows you to:
- Work on improving factors that increase value
- Plan your exit with time
- Negotiate from a position of strength
- Make informed strategic decisions
Ideally, a professional valuation should be done at least 2-3 years before considering a sale, to have room to maneuver.
Why an online estimate is not enough
Automated tools can give you a reference, but they do not replace a personalized professional analysis. Every company is unique: its market position, team, contracts, growth potential... all of this requires in-depth analysis.
At Fundenza, we combine rigorous financial analysis with deep knowledge of the Spanish M&A market to provide you with a valuation that reflects your company's real value.