Financial statements and EBITDA do not always explain how an SME actually generates its results. During a sale process, a buyer may want to analyse margins by customer, product, channel or market. Preparing this information in advance helps the company enter negotiations with clearer, more consistent and verifiable data.
A company valued at €6 million does not necessarily leave €6 million to its shareholders. Net debt, cash, working capital and other adjustments can change the value of the shares and the amount ultimately paid at closing.
An SME generating €5-10 million in revenue may be large enough to attract a buyer, but size alone is not enough. Profitability, revenue quality, niche positioning, independence from the founder and growth potential all influence whether there is a real market for the business.
When business owners approach succession, their attention often turns to who will take over and how to transfer shares to family members.
Receiving more than one offer for your company does not mean choosing the buyer with the highest price. Cash at closing, earn-outs, warranties, the entrepreneur's future role and certainty of completion can significantly change the final outcome.
An SME can report strong results despite ageing machinery and delayed investment. During a sale, however, the capital required to maintain production may affect the company’s valuation and the terms of the transaction.
Many SMEs own the factory, offices or premises where they operate. For the entrepreneur, the property often represents financial strength and the result of investments made over many years.
Supplier dependence arises when an SME cannot ensure operational continuity, margins or delivery times without relying on a small number of key suppliers.
When an entrepreneur thinks about the value of their company, the focus almost always goes to revenue, margins, EBITDA and growth prospects. Much less often, the starting point is an apparently operational question: how much capital is tied up in inventory?
For an SME, winning a major customer can feel like a turning point. Revenue increases, reputation improves, and the company gains credibility with banks, suppliers and the market.
