Ownership profit multiplier
The owner profit multiplier is a multiplier method that is mainly used for the company valuation of small companies.
The multiplier is based on the ratio of owner profit at the EBITDA level . To calculate this key figure, the profit before taxes, interest, depreciation and amortization (= EBITDA) is first determined from the profit and loss account of the company to be valued. Then the gross salary of the owner, non-operational and extraordinary expenses and the hidden reserves formed in the relevant period are added or non-operational and extraordinary income and the hidden reserves released in the relevant period are subtracted.
The owner's profit at EBITDA level expresses the monetary benefit that accrues to the owner of a company in the form of profit, salary and operational benefits. Since small businesses are mostly owner-managed, are subject to relatively lax accounting rules and have very different accounting, grant and salary policies, the owner profit at EBITDA level represents a suitable comparative figure with regard to profitability - since adjusted for these effects.
The key figure of the owner's profit and the associated multiplier come from the American corporate brokerage, which works with the analog seller's discretionary cash flow. In the meantime, the approach has also found its way into the repertoire of German-speaking management consultancies.
Individual evidence
- ↑ seller's discretionary cash flow
- ↑ Different methods of company valuation .
- ↑ SME business valuation .
literature
- Andreas Schubert & Co .: Buying and Selling Companies Successfully, Orell Füssli Verlag, 2012, Zurich, pp. 85f.