Abstract:

The valuation of small and medium-sized enterprises (SME) is a key task for the company transactions, succession arrangements, raising capital and changes in the group of shareholders. In Germany, the valuation of SME, primarily, follows the company valuation standard IDW S 1. This standard stipulates deriving the risks of a company from the capital markets with the help of the Capital Asset Pricing Model (CAPM). The CAPM itself is based on very restrictive assumptions that are not suitable for the valuation of the SME. Since the SME must systematically record their risks, hereon, due to the new laws and the auditing standards, there is an opportunity to value the SME based on their actual risks. The simulation-based valuation offers an approach to value the SME in a risk-adequate manner and, thereby, provides suitable values for the decision-making.