Valuation : Question 13
How should one value a Very Small Enterprise (VSE) with sales of around €1m that operates on the very specific construction services sector?

I’d suggest that you use the sum-of-the-parts method for valuing a VSE. This sort of company will clearly not have a strategic value because it is so small. Accordingly, it would be best to look at its net revalued assets. Very high earnings would almost certainly be due to a single manager or a personal relationship with a customer or supplier, and are thus by definition very fragile.

For more information, see chapter 40 of the Vernimmen.