How to value an SME without being an expert
Introduction
You have built your business over the years. You know every detail of how it operates, every client, every contract. But when the time comes to sell it, one question arises: what is it really worth?
Valuing an SME can seem intimidating. The methods are numerous, the technical terms plentiful, and you are not a chartered accountant. Yet obtaining an initial estimate does not require a finance degree. With a few key figures and the right methods, you can get a realistic idea of your company's value.
This initial estimate allows you to prepare your succession with peace of mind, anticipate questions from potential buyers, and avoid the classic mistakes that cause sales to fail. It does not replace a professional valuation, but it gives you a solid starting point.
This guide presents three simple methods for valuing your SME, the factors that influence its value, and the pitfalls to avoid. You will also discover how the Leez valuation tool can support you in this process, and when calling in an expert becomes essential.
📌 Summary (TL;DR)
Valuing an SME without financial expertise is possible with three accessible methods: EBITDA multiples, asset-based valuation and the Swiss practitioners' method. Value depends on concrete factors such as revenue stability, business autonomy and quality of documentation.
Common mistakes include emotional overestimation and forgetting necessary adjustments. The Leez tool offers a free initial estimate, but an expert becomes essential to structure the sale and negotiate with confidence.
📚 Table of contents
The 3 simple methods for an initial estimate
You can value an SME with three accessible approaches, without in-depth accounting expertise.
EBITDA multiple method: Multiply your earnings before interest, tax and depreciation by 3 to 5. An SME with 200,000 CHF EBITDA is worth between 600,000 and 1,000,000 CHF. Stable companies with regular growth obtain the highest multiples.
Revenue-based method: Apply a coefficient of 0.5 to 1.5 times turnover depending on your sector. A service company with 500,000 CHF turnover may be worth 250,000 to 750,000 CHF.
Asset value method: Add up the value of assets (equipment, stock, receivables) and subtract debts. This method suits companies with significant tangible assets.
These simple methods provide a range, not an exact price. To go further, consult our guide Valuing your business in Switzerland: methods and multiples 2025.
What makes value rise or fall
The valuation of an SME varies significantly according to concrete and measurable factors.
Factors that increase value:
- Regular revenue growth over 3 years
- Stable and predictable margins
- Diversified customer base (no client represents more than 20% of turnover)
- Documented and reproducible processes
- Autonomous team that functions without the owner
Factors that decrease value:
- Strong dependence on the owner for operations or client relationships
- Concentration on a single large client
- Unclear or incomplete accounting
- Recent decline in turnover
These elements directly influence the multiple applied. An SME with a diversified customer base and clear processes will obtain a multiple of 5x, compared to 3x for a company dependent on its owner.
Discover what buyers really look at first and how to make an SME attractive without selling it yet.
The classic mistakes that distort the estimate
Sellers often make the same mistakes when self-assessing their SME.
Overestimating emotional value: Your years of work and your attachment do not translate directly into market value. A buyer pays for future cash flows, not for your personal story.
Including personal assets: The company car or the office in your home are not part of the business value if the buyer cannot use them.
Ignoring hidden debts: Unpaid invoices, personal guarantees or ongoing disputes reduce the real value.
Comparing with different sectors: A multiple of 5x in tech does not apply to retail.
Forgetting necessary adjustments: Your owner's salary must be normalised to market level. Exceptional charges must be restated.
These mistakes create a significant gap between your expectations and the market price. Understanding why some SMEs never sell helps to avoid them.
Using the Leez valuation tool
Leez offers a free valuation tool accessible to all sellers and buyers.
The process is simple: you enter a few key data points (turnover, EBITDA, business sector). The algorithm applies Swiss market multiples and provides you with an indicative range in a few minutes.
What the tool provides:
- An estimate based on actual transactions in the Swiss market
- A valuation range adapted to your sector
- A starting point for your considerations
What the tool does not replace: A complete expert valuation with due diligence. It is an initial estimate, not a final price.
The tool allows you to position yourself before publishing your business or consulting an expert from the Leez network.
Estimate the value of your SME in a few minutes.
When to call in an expert
A professional valuation becomes necessary in several specific situations.
Complex business: Multiple activities, integrated real estate or particular legal structure require in-depth analysis.
Advanced negotiations: When a serious buyer requests a justified valuation, an approximate estimate is no longer sufficient.
Family succession: Tax and inheritance issues require a valuation compliant with Swiss tax standards.
Contested valuation: If the buyer contests your price, an independent expert provides objective validation.
Bank financing: Banks require a professional valuation to grant an acquisition loan.
Experts (fiduciaries, M&A advisers) use advanced methodologies: DCF (discounted cash flow), complete due diligence, detailed sector analysis.
The Leez expert network is available without obligation. Consult our partners specialising in business succession.
Valuing an SME without being an expert is possible. Simple methods such as the EBITDA multiple or the practitioners' method allow you to obtain a reliable initial estimate. These tools provide a useful order of magnitude to start thinking or engage in discussions.
But an estimate is not a final valuation. Qualitative factors, such as dependence on the owner, team quality, client diversification, strongly influence the final price. And classic mistakes, such as ignoring adjustments or overvaluing assets, can completely distort the result.
To refine your estimate, use Leez's free valuation tool. You will obtain a range based on your financial data. If you are preparing a sale or acquisition, expert support often remains necessary to validate the figures and structure the transaction. Our partner network can direct you to the right specialists.
