Valuing your business before sale
Methods, criteria and practical advice for determining a credible and defensible transfer value before transmission.
Expert note: This article was written by our chartered accountancy firm. Information is current as of 2026. For a personalised review of your situation, contact us.
Value your business before the sale
Updated March 2026 - Valuing your business is not about choosing a flattering number. It is necessary to build a credible basis for negotiation, understandable by the seller, financeable by the buyer and defensible throughout the process. Poor valuation slows down the sale, erodes trust and makes discussions harder than they need to be.
What is a good valuation
A good valuation must be:
- ▸consistent with historical figures;
- ▸compatible with the financing capacity of the buyer;
- ▸adapted to the sector and the size of the company;
- ▸sufficiently argued to withstand due diligence.
To complete, also consult Why anticipate the transfer of your business?, our guide on asset and liability guarantee and our global file Business transfer.
The main families of methods
Heritage methods
They mainly look at assets and liabilities. They are useful, but rarely sufficient on their own.
Yield methods
They focus on the company's ability to generate results over time.
Comparative methods
They consist of bringing the company closer to comparable transactions or scales, with caution.
What really influences the transfer value
- ▸the quality of turnover;
- ▸dependence on a few customers or the manager;
- ▸normative profitability;
- ▸the working capital requirement;
- ▸the strength of the team and the organization;
- ▸visibility on the market.
Hayot Expertise Advice: the right question is not "how much is my business worth in absolute terms?" but “how much is it worth to a rational buyer, under secure takeover conditions?”
The most frequent errors
- ▸confuse emotional value and market value;
- ▸retain a single method without cross-referencing the results;
- ▸promote an unsustainable performance peak;
- ▸forget the impact of the manager on future performance.
How to make valuation more robust
- ▸restate the accounts if necessary;
- ▸formalize the strengths and weaknesses;
- ▸document the assumptions;
- ▸bring the theoretical value closer to the financeable price.
You want a valuation useful for negotiation
A serious valuation serves to drive the sale, not to block the market.
Discover our support in strategy and evaluation
Conclusion
In 2026, valuing your company before the sale requires combining method, reliable data and realistic reading of the market. The earlier the valuation is prepared, the more fluid the negotiation becomes.
📞 Do you want to determine a credible transfer value before launching the process? We can prepare a reasoned and actionable valuation with your actual figures. Make an appointment with an expert
(Official sources: Service-Public on valuation before transmission, Bpifrance Création on valuation and return value)
Article written by Samuel HAYOT
Chartered Accountant, registered with the Institute of Chartered Accountants.
Need a quote or personalised advice?
Our accountancy firm supports you through all your steps. Get a free quote to review your situation and receive a bespoke fee proposal, or contact us directly.