Many business owners have a figure in mind: a multiple of profit, the price achieved by a comparable company or simply what years of hard work ought to be worth. A buyer starts elsewhere. Buyers consider not only what the business earns today, but how likely those results are to continue after the acquisition.
A strong market does not remove the valuation gap
Dealsuite’s August 2026 Acquisition Barometer presents two realities side by side. The average EBITDA multiple for Dutch SMEs remained at 5.0x in the first half of 2026, its highest level in years. At the same time, M&A advisers consider the seller’s value expectation too high in 42% of sale processes. In those cases, the average gap from realistic market value is 23%, and 19% ultimately end without a deal because of it.
The study covers Dutch SMEs with revenue between €0.5 million and €50 million. This edition received input from 126 of 291 M&A advisory firms. According to Dealsuite, the surveyed population represents more than 90% of the Dutch SME acquisition market.
A buyer does not buy profit alone
Through my work in private equity and M&A, I have often assessed companies from a buyer’s or investor’s perspective. Good profit matters, but it rarely tells the whole story.
Consider two companies that each generate €250,000 in EBITDA. In the first, the owner wins the key clients, a small number of customers represents a large share of revenue and essential knowledge sits with one person. The second earns the same profit but has an independent team, a broader base of partly recurring revenue and dependable monthly information on margin and cash flow.
They earn the same amount on paper, but present very different risks. As I often tell business owners: “Profit does not determine value on its own. The durability of that profit determines how much confidence a buyer places in it.”
Why the familiar calculation falls short
With €300,000 in EBITDA and an average multiple of 5.0x, €1.5 million may look like an obvious valuation. In practice, a multiple is mainly a benchmark. Dealsuite stresses that valuation is company-specific and shaped by factors including growth, profitability, market position and risk.
Size matters as well. For H1 2026, Dealsuite reported an average multiple of 7.0x for companies with €10 million in EBITDA. It does not establish an average below €200,000 EBITDA, because results fluctuate more and risk is highly company-specific. Applying one market average to your own profit therefore creates false certainty.
What remains when you step away?
An owner who carries every client relationship, proposal and decision may appear indispensable during growth. In a sale, that same strength becomes dependency. A buyer asks whether customers, expertise and performance will remain if the owner reduces their involvement or leaves.
The same applies to revenue. One million euros from a broad base of recurring customers is different from one million that must be sold again every year. If one customer represents 30%, the owner may see a trusted fifteen-year relationship; the buyer sees concentration risk. Both perspectives can be true.
Good management information makes quality demonstrable
Accurate accounts are not the same as information that explains how the company performs. Can you quickly show which customers or activities generate the best margin? Why gross margin changed? How much cash the company actually produces? And which assumptions support next year’s budget?
Those questions should not wait for due diligence. They already help you make better decisions today. Reliable information reduces uncertainty and demonstrates that performance is repeatable rather than accidental.
Preparing for sale starts years earlier
Recent research published by ABN AMRO also highlights the importance of preparing for succession in time. Reducing customer concentration, building a management team, documenting processes and improving margins cannot be completed in a few months. A dependable history of management information also takes years to establish.
You may want to sell in two years, in ten years or never. The improvements are largely the same: predictable cash flow, healthy margins, less dependence on the owner and an organisation that can continue to grow independently.
The better question
The most useful question is therefore not only what your business is worth today. Ask which risks reduce buyer confidence and what you can do now to improve the quality of profit, cash flow and the organisation behind it.
Control today. Value tomorrow.
Research & sources
- Dealsuite, Acquisition Barometer August 2026, published 13 August 2026 (Dutch source).
- ABN AMRO, Family businesses are strong in continuity, but transitions require more, published 16 July 2026 (Dutch source).
Mylène supports SME owners who need more than an accountant but are not yet looking for a full CFO structure. Drawing on experience in finance, private equity and M&A, she turns figures into clear choices about cash flow, profit, growth and business value. Together with owners, she builds financially stronger, better organised and more transferable companies.
More about Mylène →