Lump-sum formula or a valuation that holds up?
Without substantiation you fall back on a lump-sum. A professional valuation sets a reference value you can substantiate, repeat and defend.
The lump-sum formula is simple, but ignores what your business is actually worth. A defensible valuation does not.
The lump-sum formula
Simple, but rarely in your favour
The lump-sum approach often takes book equity plus a fixed multiple of normalized EBITDA. It is quick to compute, but ignores growth, market position and your company’s actual cash flows.
So the result often sits beside the real value: and rarely in your favour when it comes to the taxable gain.
- Lump-sum: book equity + 4× normalized EBITDA
- Ignores growth, risk and actual cash flows
The defensible valuation
Ten methods, transparent and reviewable
A professional valuation combines up to ten methods: DCF, EBITDA multiple, SDE, ARR, adjusted NAV, market approach and more: with transparent normalizations and a full audit trail.
The result is a reference value that holds up when it matters, and that your accountant can help substantiate.
- Up to 10 methods in one workflow, academically grounded
- Transparent normalization with a full audit trail
- Report in your own branding, ready for your accountant or auditor
Frequently asked questions
What is the lump-sum method?
A fixed formula, often book equity plus a multiple of EBITDA. Simple, but it ignores what your business is actually worth.
Why a professional valuation?
It gives a reference value you can substantiate and defend: with multiple methods, transparent normalizations and an audit trail.
Can my accountant use this?
Yes. The report is built to be substantiated and co-signed by your accountant or auditor.
Set your defensible value
Start with a free scan, or see how the lump-sum method compares with a market-based valuation.
This page provides general information and is not tax or legal advice. Confirm your specific situation with your accountant or tax adviser.
Related depth and references
Related depth and references
Capital gains tax 2026: overview
Back to the overview: the law, lump-sum vs. professional, and how Upswitch helps.
Reference value 31 December 2025
Why the reference moment drives your later gain.
Substantial shareholding rates
20% threshold, €1M exemption and progressive brackets.
Role of accountant and auditor
Why reviewable data and normalizations matter.
Deadline 31 December 2027
The window to lock in your valuation in time.
Lump-sum vs. EBITDA multiple
The lump-sum formula next to a market-based EBITDA valuation.
EBITDA multiple explained
How the sector-calibrated EBITDA multiple works.