Business Valuation for SMEs: Edelweiss in WirtschaftsWoche
2 July 2026, Frankfurt am Main
Under the title Selling an SME: Why True Value Only Emerges in the Market, WirtschaftsWoche presented the valuation approach of Edelweiss Corporate Finance. The article examines the question at the beginning of every sale process: What is my company really worth? Our experience from numerous SME transactions shows that the price is not found in a table—it emerges through competition.
Three methods, three answers
Capitalised earnings value, net asset value and market multiples are the three recognised approaches to business valuation. Each examines a different aspect and produces its own range. None delivers the single correct value on its own. They provide a sound starting point for negotiation, not its final result.
True value emerges in the market
The market ultimately determines the actual purchase price. It can exceed the calculated value significantly when several suitable buyers compete for a company at the same time. For sellers, this means the highest value is not merely calculated—it is realised through a structured process with genuine competition.
Why competition makes the difference
Anyone negotiating with only one interested party is in a weaker position. A competitive bidding process only develops when several qualified buyers are approached in parallel. This can drive the price upwards while also giving the seller a choice regarding the transaction terms. Edelweiss establishes precisely this process for its clients.
Confidentiality protects the outcome
A sale process is only as strong as its confidentiality. An anonymous market approach, non-disclosure agreements and controlled access to information protect the company’s value until the right partner has been identified. Competition can be maintained without unsettling employees, customers or competitors.
Read the full article in WirtschaftsWoche
The full German-language article is available here: Company sales in the SME sector on wiwo.de.
Would you like to understand what your company is worth in the current market? Arrange a confidential initial consultation.
Frequently asked questions
How is the value of a company determined?
Three recognised methods are commonly used: capitalised earnings value, net asset value and market multiples. Each produces a range; the market ultimately determines the actual price.
Why is the purchase price often higher than the calculated value?
Because several suitable buyers competing for the business can drive the price upwards. The highest value is not simply calculated; it is realised in a structured bidding process.
What can sellers do to maximise value?
Prepare early, organise the documentation and conduct the sale through a structured, confidential process that creates genuine competition among buyers.
