Small and medium-sized enterprises (SMEs) are the backbone of the German economy – yet when it comes to their valuation, practice often misses the mark. In a new podcast episode, the directors of EIQF tackle a seemingly dry but highly relevant topic: business valuation according to the IDW S 1 standard – and why it is problematic for SMEs.
At the center of the criticism is the Capital Asset Pricing Model (CAPM), which continues to form the basis of many valuations. But this is precisely where the problem lies: the theoretical assumptions of CAPM simply do not fit the reality of mid-sized companies. Corporate risks are distorted, and specific characteristics are disregarded. The podcast guests therefore present a highly interesting alternative: simulation-based valuation.
Instead of relying on general market assumptions, this approach analyzes the actual, company-specific risks – granular, transparent, and compliant. Particularly noteworthy: the method is compliant with current regulations such as StaRUG and IDW PS 340 – an important signal for auditors, consultants, and CFOs.
The answers are provided in this insightful podcast episode – a must for anyone involved in business valuation, mid-market financing, or restructuring.
🎧 Listen now – and rethink valuation.
Youtube Linkedin Envelope Table of Contents Have you ever wondered why, when calculating the standard deviation, we sometimes divide by 𝓷 and sometimes by 𝒏-1?
Youtube Linkedin Envelope Table of Contents In corporate planning practice, the cash flow statement has often been neglected to date, even though it represents a
Youtube Linkedin Envelope Table of Contents In an increasingly volatile and crisis-prone world, traditional deterministic management planning is reaching its limits. Target-value-oriented planning systematically ignores
Youtube Linkedin Envelope Table of Contents Exactly 100 years ago, in 1925, Werner Heisenberg published his groundbreaking article: 👉 “On the Quantum-Theoretical Reinterpretation of Kinematic
The semi-standard deviation (also downside deviation) measures the dispersion below a reference value (usually the mean or a target return such as 0%).
Many reluctantly recall their statistics lectures: formulas, variance, standard deviation – and the question: What’s the point of it all? However, standard deviation holds a real treasure: it is a central tool in modern risk management.
