Business succession › Business valuation calculator
What is your business worth?
An indicative value for trade businesses, calculated with the logic business advisers in the trades use for valuations. Quickly with five key figures, or in detail with the figures from your annual accounts.
Calculate your business value
First the quick look, then the precise one
The fields are pre-filled with an example business: an electrical contractor with twelve employees. Overwrite the values with your own and the result updates immediately. The digitalisation slider shows how much value there is in a business that is set up digitally.
How it is calculated
In brief
How the calculator works
A buyer pays for the earnings the business will generate in future, and at least for what stands in the workshop and the yard. That is where the indicative value comes from.
01 · Earnings
What is left after your salary
From the profit, we deduct what an employed manager would cost in your place, then a standardised tax of 35%.
02 · Rate
How risky the purchase is
The earnings are divided by a capitalisation rate of around 20%. If a lot depends on the owner, it rises. Digital processes lower it.
03 · Lower limit
What remains at the very least
The current value of machinery, vehicles and stock is the lower limit. Whatever the capitalised earnings value exceeds it by is the goodwill.
How each step is calculated and how to read your result:
Honest arithmetic
What the calculation does not capture
The calculator knows your figures, not your business. These points noticeably shift the final price, in either direction.
Negotiation
Value is not price
What is actually paid is negotiated between buyer and seller. The figure here is the starting point for that negotiation.
Financing
The buyer’s bank
If a buyer cannot finance the price, the price does not exist. Clean figures make financing easier.
People
Customers and team
Long-standing customers and key staff who stay are worth a great deal. If they leave with the owner, the value falls.
Market
Trade and region
Trades in demand attract more interested buyers, shrinking ones fewer. That moves the price more than any interest rate.
Property
Workshop and hall
If you own the workshop, it is usually valued separately and sold or let. It is not included in the calculator.
Expert valuation
Austria and Germany
In Austria, professionals value businesses according to the expert opinion KFS/BW 1; in the German trades, usually according to the AWH standard. The calculator does not replace an expert valuation.
The basis is the logic of the capitalised earnings method as applied by business advisers in the trades under the AWH standard. Weighting, rates and the effect of digitalisation are assumptions of this calculator. Sources (in German): Deutsche Handwerks Zeitung · Handwerksblatt · IHK Schwaben
How do you reach a higher value?
The handover check shows which value brakes are weighing on your business today and what you can do about them before the handover. The first conversation is free of charge; you can also get in touch by email at office@slotta.at.