How to Increase Your Company’s Value | IMAP M&A Insights

In this short video, Dr. Carsten Lehmann, Partner at IMAP Germany, shares his perspective on how business owners can significantly increase the value of their company ahead of a sale. Drawing on his extensive M&A experience, Carsten explains how buyers think about valuation, and how positioning your company correctly can lift its value by more than 30%.

Beyond the Numbers - Positioning for a Higher Multiple

While company valuations often appear purely mathematical, perception plays a crucial role. Most buyers will look at the market average multiple for your sector  - for example, 8x EBITDA - and apply it to your earnings. However, if you can demonstrate stronger growth prospects and higher margin potential, you can justify a higher multiple, such as 9x or 10x. That shift alone can increase your company’s value by over 30%.

Highlighting Synergies and Future Potential

Buyers also consider how they could enhance your business post-acquisition. Through economies of scale or scope, i.e. synergies, they may believe they can increase your EBITDA beyond what it is today. Showing them this potential future upside is essential in convincing them your business is worth more than the current figures suggest.

Creating Competitive Tension

Achieving this higher valuation takes careful preparation, deep analysis, and creative thinking. As such, it is extremely important to generate competitive tension among buyers - positioning your company as a “once-in-a-lifetime opportunity” that multiple buyers are eager to secure.

This combination of clear growth potential, identified synergies, and competitive pressure can transform how buyers perceive value - and ultimately, the outcome of your sale process.

Watch the video and learn what buyers are looking for, and how positioning your business strategically can unlock greater value in a sale.