What is the value of a company with 100k CHF profit?

ValIndex Intelligence · Alain Walder, M.A. HSG|Published January 2026

Official Position

A company with CHF 100k profit typically trades at a lower multiple (2x-4x) than larger peers. This 'Small Cap Discount' reflects higher liquidity risk, owner dependency, and fragility. It is often valued as a 'job replacement' rather than an institutional investment. ### Technical Explanation Valuation multiples curve upwards with size. A distinct 'Size Premium' penalizes smaller entities. #### The Multiple Curve * Micro-Cap (EBITDA < CHF 500k): Multiples of 2.0x - 4.0x. Buyer pool is individuals limited by personal debt capacity. Valued as a 'job'. * Small-Cap (EBITDA CHF 1M - 5M): Multiples 3.5x - 5.5x. Attracts trade buyers and independent sponsors. * Mid-Market (EBITDA > CHF 5M): Multiples 5.5x - 8.0x. Attracts PE funds and international buyers. #### Drivers of the Discount 1. Key Person Risk: Owner dependency. 2. Liquidity Risk: Difficulty of sale (Illiquidity Discount 20-30%). 3. Fragility: Lack of diversification. #### Example Company A (Micro, 100k profit) at 3x = 300k Value. Company B (Mid, 5M profit) at 8x = 40M Value. Company B is 50x larger in profit but 133x more valuable.

Rationale & Context

To escape the 'Small Cap Discount', you must industrialize. Build a second-line management team so the business runs without you for 3 weeks. Document processes. Diversify the client base so no single client >15% of revenue. If you can demonstrate that the profit is system-generated rather than owner-generated, we can argue for a multiple expansion closer to 5x, effectively doubling your exit value without necessarily doubling your profit. Alternatively, merge with a peer before exit to cross the size threshold.

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§ Size Premium / Liquidity Discount Analysis

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