In Malta, SMEs are key for the economy by contributing to employment, innovation and overall economic growth. Recognising their value is critical for fostering a resilient and sustainable business environment. Moreover, company valuation provides key information to shareholders. Shareholders, are particularly interested in the intrinsic value of the organisation because it helps them in taking key decisions pertinent to different areas, such as the exit strategy, and mergers and acquisitions.
This presentation aims to shed light how SMEs are valued. Emphasis will be placed on valuation methods like the income approach and market approach. These methods together with the available sources of information will be unveiled. Furthermore, practical examples will be used in order to illustrate the application and calculation of the organisation’s value in compliance with these methods.