Basic valuation

The basis of the valuation is more or less identical for all companies. The Nimbo Guide to Corporate Value provides you with useful background information and everything you need to know about the topic.

Calculation example for an online shop

Assumption: An online shop in Switzerland with up to five employees achieves a profit of 50,000 with a turnover of 500,000.

Multiply the profit by an industry standard multiplier. There is no binding multiplier that could be mentioned here. For small to medium-sized online shops, a multiplier between 3 and 6 is common.

If we assume a multiplier of “4”, the valuation would be:

Value = Profit x Multiplier = 50,000 x 4 = 200,000

General value drivers

It is not only the profitability and size of a company that determine its value. A number of internal value drivers also impact the selling price – both positively and negatively. Based on the base valuation, the value can increase or decrease by up to 25%. The most important value drivers here are:

  • Independence from the owner : For a buyer, the question arises whether the success would continue without the current owner. The less the company depends on the activities and relationships of the owner, the higher the average bids are.
  • Growth prospects and potential: Investors are interested in the future prospects of a company. Questions that are important here: Is the main market growing? What percentage growth do I forecast for my company over the next three years? Is there potential within the core competence that could be exploited profitably? Is there a shortage of skilled workers or is it easy to recruit new employees? Is there sufficient cash flow for replacement and expansion investments?
  • Market position: This takes into account the catchment area and the pricing policy of the company. Companies that operate not only regionally and companies that can enforce prices that are above the market average receive, on average, significantly higher purchase offers.
  • Balance: How dependent is the company on individual customers or business partners (e.g. suppliers)? Companies without large concentration risks receive, on average, higher purchase offers.
  • Employees: One motivation for purchasing companies can be access to new qualified employees who are difficult to find on the labor market. Companies that can attract and retain sought-after employees receive, on average, significantly higher purchase offers.

Online shop specific factors

Which factors are particularly relevant when evaluating online shops? What influences the attractiveness and thus the value of the company? If your company presents itself exceptionally positively in the following points, this can mean an additional increase in value of around 10-15% on the base value.

  • Sales channels: For an online shop, it is crucial to have a well-thought-out multi-channel strategy that integrates and optimally uses the various sales channels and – very important for you – makes you independent of a single sales channel, especially of individual platforms. With a good strategy, you will increase your reach and sales and also improve the customer experience and strengthen customer loyalty. Companies whose sales are not or hardly dependent on platforms receive a higher rating.
  • Share of private labels: Have you managed to successfully implement a private label strategy and does a large percentage of your sales consist of your own products? Private labels promise positive effects on profit margins, customer loyalty, differentiation, independence from suppliers and the potential for scaling. A strong private label is a sustainable competitive advantage and increases the value of your company.
  • New customer acquisition: What is your organic share of new customer acquisition? If you rely only to a limited extent on external advertising, your acquisition costs are significantly lower, your profitability is higher, and your growth is more stable and sustainable. The less you depend on external platforms, the greater your economies of scale. All of these factors contribute to making the online shop more attractive to investors and buyers, which ultimately increases the company’s value.
  • Customer loyalty and repeat purchase rate: Do your customers buy from you more than once or even frequently? A high percentage of returning customers is a sign of satisfaction and loyalty and also increases the value of the company.

Online company rating for online shops

The Nimbo company valuation takes into account both the internal value drivers and the industry-specific factors in its evaluation. Start the Nimbo company evaluation , select “Retail” as the industry and “Online Shop” as the subcategory.