How is the enterprise value determined?

Using the earnings multiple method, the value of the company and the resulting purchase price are accurately and transparently determined.

The basis for the valuation is a sustainable EBIT (Earnings Before Interest and Taxes), which is subsequently multiplied by a market-driven factor. The magnitude of the multiplier depends on various factors, such as technical expertise, national or international positioning, growth potential or R&D capacity.

Company liabilities are deducted from the enterpreise value calculated as per the above. This straightforward calculation results in a value, which represents the equity value (purchase price) of the company.