What is the family business worth? Valuing it before a sale or a handover
By
Marta Lozano
15 May 2026
6 min read
A sale, a partner leaving or the next generation taking over all start with the same question. How a valuation is done, and why its purpose changes the number.
A valuation is always for something: a sale, a partner who leaves, shares passed to the next generation, a bank. The purpose decides which method carries the most weight, so it is the first thing we agree.
The usual methods
Discounted cash flow values the cash the business will generate; multiples compare it with similar companies that have been sold; net asset value matters most for holding companies and property. We use more than one and explain the range.
Adjustments that move the number
Owners’ salaries above or below market, property the family owns and rents to the company, and cash the business does not need. Each one is set out, so the family can see where the figure comes from.
Handing over in Spain
A family business passed to children or a spouse can qualify for a 95% reduction in Spanish inheritance and gift tax, if it meets the conditions for the wealth tax exemption and the heirs keep it for ten years. A valuation done well in advance is part of the file.
We prepare valuations that hold up with the tax office and with a buyer, and talk them through with the whole family.
General information, correct at the date of publication. It is not advice for your situation; talk to us before you act on it.
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