How to Value a German Mittelstand Company: EBITDA Multiples, IDW S1, and Worked Examples
Valuing a German Mittelstand company requires understanding EBITDA multiples by sector, the IDW S1 income approach, and how to normalize owner-managed financials. This guide walks through every method with a detailed worked example for a €5M revenue Maschinenbau business.
## How to value a German Mittelstand company Valuing a Mittelstand company is one of the most nuanced exercises in European M&A. There is no daily market price to anchor on. You build the number from first principles: sector-comparable multiples, normalised earnings, an honest read on owner dependency. Done correctly, you have a defensible offer or asking price. Done poorly, you either overpay for a business that quietly collapses without the founder, or you leave a generation of family wealth on the table. This is the framework I work from: methods used in practice, sector benchmarks for 2025…