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Small Business Valuation Formula Multiples, 2014 Edition


Comprehensive reference guide provides market-based business valuation multiples for small businesses in more than 200 industries. The valuation multiples for each industry are derived from actual business sales transactions as reported by BIZCOMPS®, with the primary focus on small businesses priced at less than $1 million. The multiple ranges presented in the report represent the midrange of the transactions for each industry. The sample report includes a complete list of all the industries included in the full report.

The report can be purchased for $79.00 at BizMiner.com. The charge will appear on your next credit card statement as BizMiner/Brandow Company. Upon purchase, you will receive instructions on how to access this report online as a .pdf file. You must have Adobe Reader installed to open the .pdf file. A free copy of this software can be downloaded at http://get.adobe.com/reader/.


Frequently Asked Questions

Which business valuation multiples are included?
What is included in the price determined by these multiples?
How do I determine the equity value of the business?
Why use the midrange?
How is the midrange determined?
Where can I get more information on the transaction data?
What industries are included?
How can I order the report?


Which business valuation multiples are included?
The multiples included in this report are:

Price/Revenue Multiple - Price divided by annual net sales

Price/SDE Multiple - Price divided by seller's discretionary earnings

Seller's discretionary earnings (SDE) is defined as net income before the primary owner's compensation, other discretionary, nonoperating, or nonrecurring income or expenses, depreciation, interest, and taxes.


What is included in the price determined by these multiples?
The price determined by these multiples includes intangible assets (such as brands, copyrights, trademarks, patents, licenses, franchises, customer lists, and goodwill), and furniture, fixtures, and equipment. It does not include cash, accounts receivable, inventory, real estate, other tangible assets, or liabilities, so these items must be added or subtracted, as applicable, in arriving at the indicated equity value for the business.


Valuation FormulaHow do I determine the equity value of the business?
The equity value of the business is determined by multiplying revenue or seller's discretionary earnings (SDE) by the corresponding multiple and adding or subtracting, as applicable, cash, accounts receivable, inventory, real estate, other tangible assets, and liabilities.


Why use the midrange?
The midrange is best used to determine a "typical" range of value for small businesses based on actual market transactions. It includes both the average and the median but since it presents a central range rather than a single point, it is less affected by individual transactions.


How is the midrange determined?
The valuation multiples presented in this analysis are derived from actual market transactions as reported by BIZCOMPS®, which provides transaction data on over 12,000 small business sales transactions from a wide range of industries. The midrange represents the middle one-third of the reported transactions for an industry, as illustrated graphically below. The midrange includes both the average and the median, with the midpoint of this range closely approximating the median in most cases.

   Low Selected Range High  


Where can I get more information on the transaction data?
The valuation multiples presented in this analysis are derived from actual market transactions as reported by BIZCOMPS®, which provides transaction data on over 12,000 small business sales transactions from a wide range of industries. BIZCOMPS® data is available in print, CD-ROM, or online versions; for more information on these transactions or to purchase the BIZCOMPS® data, see http://www.bizcomps.com.


What industries are included?
All industries included in the report are listed below:

SIC Code and Industry Description

0181 - Plant Nurseries
0740 - Veterinary Clinics and Hospitals
0752 - Pet Grooming and Boarding
0782 - Landscape and Lawncare Companies
0783 - Tree Trimming and Pruning
1520 - Home Improvement Contractors
1541 - General Building Contractors - Nonresidential
1542 - Fire and Flood Restoration Contractors
1611 - Paving Contractors
1623 - Utilities Contractors
1711 - Plumbing, Heating, and Air Conditioning Contractors
1721 - Painting Contractors
1731 - Electrical Contractors
1741 - Masonry Contractors
1742 - Drywall, Plaster, Acoustical, and Insulation Contractors
1743 - Tile and Marble Contractors
1752 - Commercial Flooring Contractors
1761 - Roofing, Siding, and Sheet Metal Contractors
1771 - Concrete Contractors
1791 - Structural Steel Contractors
1793 - Window and Door Contractors
1794 - Excavating Contractors
1799 - Fencing Contractors
1799 - Swimming Pool Contractors
2050 - Wholesale and Commercial Bakeries
2097 - Ice and Ice Products Manufacturers
2300 - Apparel and Clothing Manufacturers
2389 - Contract Sewing
2394 - Awning, Tent, and Other Canvas Products Manufacturers
2395 - Commercial Embroidery
2431 - Millwork, Window, and Door Manufacturers
2434 - Kitchen Cabinet and Countertop Manufacturers
2500 - Furniture Manufacturers
2591 - Window Coverings Manufacturers
2700 - Book, Magazine, and Newspaper Publishers
2752 - Commercial Printers
2759 - Silk Screen Printers
2834 - Water Purification Products Manufacturers
3080 - Plastics Products Manufacturers
3270 - Concrete Products Manufacturers
3281 - Cultured Marble and Marble Products Manufacturers
3441 - Structural Metal Fabricators
3444 - Sheet Metal Fabricators
3446 - Ornamental and Architectural Metal Products Manufacturers
3470 - Metal Coating, Plating, and Finishing
3544 - Tool and Die Shops
3585 - HVAC and Refrigeration Equipment Manufacturers
3599 - Machine Shops
3672 - Electronic Assembly Manufacturers
3714 - Auto Products Manufacturers
3949 - Sporting Goods Manufacturers
3993 - Sign Manufacturers
4119 - Limousine Services
4119 - Medical and Special Needs Transportation
4212 - Waste Collection and Trash Removal
4213 - Trucking Companies
4213 - Vehicle Transport Companies
4214 - Moving and Storage Companies
4215 - Courier and Delivery Services
4581 - Aircraft Cleaning
4724 - Travel Agencies
4731 - Freight Forwarders and Brokers
4959 - Parking Lot Sweeping
4959 - Environmental Cleanup and Consulting
5013 - Auto Products Distributors
5031 - Door, Window, Cabinet, and Millwork Distributors
5044 - Office Equipment Distributors
5046 - Restaurant Equipment and Supplies Distributors
5047 - Medical Equipment and Supplies Distributors
5051 - Metal Supply Centers
5063 - Electrical Supplies Distributors
5065 - Electronic Parts and Equipment Distributors
5074 - Plumbing and Heating Equipment and Supplies Distributors
5085 - Industrial Equipment and Supplies Distributors
5087 - Cleaning and Janitorial Supplies Distributors
5088 - Golf Cart Distributors
5091 - Pool and Spa Equipment and Supplies Distributors
5092 - Toy, Game, Hobby, Arts, and Crafts Distributors
5093 - Scrap and Waste Material Recyclers and Processors
5094 - Jewelry, Precious Stone, and Precious Metal Distributors
5112 - Office Supplies and Stationery Distributors
5113 - Paper Products and Packaging Distributors
5140 - Food Distributors and Wholesalers
5170 - Oil, Fuel, and Gas Distributors
5193 - Flower and Nursery Plant and Supplies Distributors
5199 - Advertising Specialties Distributors
5211 - Building Materials and Supplies Stores
5211 - Garage and Overhead Door Dealers
5231 - Glass and Mirror Shops
5251 - Hardware Stores
5261 - Lawn and Garden Centers
5331 - Dollar and Variety Stores
5411 - Convenience Stores
5411 - Grocery Stores and Supermarkets
5421 - Meat Markets
5421 - Fish and Seafood Markets
5441 - Candy Stores
5461 - Retail Bakeries
5462 - Donut Shops
5499 - Bottled Water and Ice Retailers
5499 - Health Food, Vitamin, and Supplement Stores
5521 - Used Car Dealers
5531 - Auto Parts and Accessories Stores
5531 - Tire Dealers
5541 - Gasoline Service Stations and Minimarts
5551 - Boat, Watercraft, and Marine Supply Dealers
5561 - Recreational Vehicle Dealers
5571 - Motorcycle Dealers
5600 - Clothing Stores
5661 - Shoe Stores
5699 - Uniform Stores
5712 - Furniture Stores
5713 - Carpet and Floor Covering Stores
5714 - Drapery and Window Covering Shops
5722 - Household Appliance Stores
5734 - Computer and Electronics Stores
5812 - Restaurants, Sandwich Shops, and Cafes
5812 - Coffee Shops and Coffeehouses
5812 - Food Caterers and Catering Services
5813 - Bars, Taverns, and Nightclubs
5912 - Retail Pharmacies
5021 - Liquor Stores
5932 - Pawn Shops
5932 - Used Merchandise Stores
5941 - Bicycle Shops
5941 - Bait and Tackle Shops
5941 - Dive Shops
5941 - Sporting Goods Stores
5942 - Bookstores
5943 - Office Supplies and Stationery Stores
5944 - Jewelry Stores
5945 - Toy, Hobby, Arts, and Craft Stores
5947 - Card and Gift Shops
5961 - Mail Order Businesses
5962 - Vending Machine Operators
5963 - Newspaper Delivery Routes
5992 - Retail Florists and Flower Shops
5993 - Tobacco Retailers
5995 - Retail Optical Centers
5999 - Cell Phone Retailers
5999 - Pet Stores
5999 - Picture Frame Shops
5999 - Commercial Art Galleries
5999 - Cosmetics and Beauty Supplies Stores
5999 - Pool and Spa Equipment and Supplies Stores
5999 - Retail Hearing Aid Centers
5999 - Trophy Shops
6099 - Check Cashing Services
6361 - Title Insurance Companies
6411 - Insurance Agencies
6531 - Real Estate Brokers
6500 - Property Management Companies
7211 - Commercial Laundries
7215 - Coin-Operated Laundries
7216 - Dry Cleaners
7217 - Carpet Cleaning
7221 - Photographers and Photography Studios
7230 - Hair, Nail, and Beauty Salons
7299 - Dating Services
7299 - Massage Therapists
7299 - Tanning Salons
7299 - Tuxedo Rental
7311 - Advertising Agencies
7322 - Collection Agencies
7331 - Direct Mail Advertising Services
7334 - Photocopying and Duplicating Services
7338 - Secretarial and Transcription Services
7342 - Pest Control Services
7349 - Janitorial and Cleaning Services
7359 - Equipment Rental and Leasing
7359 - Party and Event Rentals
7359 - Bounce House Rentals
7360 - Employment and Temporary Help Agencies
7378 - Computer Repair and Maintenance
7371 - Website Design and Development
7372 - Software Companies
7379 - Internet Service Providers
7381 - Security Guard Services
7382 - Security Systems and Alarm Services
7389 - Home Inspection Services
7389 - Interior Designers
7389 - Pool Cleaning Services
7389 - Packing and Shipping Services
7389 - Parcel Shipping and Private Mail Centers
7389 - Paralegal Services
7389 - Convention, Event, Meeting, and Trade Show Services
7514 - Auto and Car Rental
7532 - Auto Body Shops
7532 - Auto Interior and Upholstery Repair
7533 - Auto Muffler Shops
7536 - Auto Glass Repair Shops
7537 - Auto Transmission Repair Shops
7538 - Auto Repair Shops
7542 - Car Washes and Auto Detailing
7549 - Tow Truck and Towing Services
7549 - Oil Change and Fast Lube Operations
7549 - Auto Window Tinting
7629 - Appliance Repair
7641 - Upholstery and Furniture Restoration
7699 - Locksmiths
7812 - Video Production
7841 - Video Rental
7911 - Dance Studios
7991 - Health and Fitness Clubs
7991 - Day Spas and Salons
7992 - Golf Courses and Driving Ranges
7993 - Amusement Arcades
7999 - Billiard Parlors
7999 - Boat and Jet Ski Rentals
7999 - Gaming Casinos
7999 - Casino Arcades
8011 - Medical Practices
8021 - Dental Practices
8021 - Oral and Maxillofacial Surgery Practices
8041 - Chiropractic Practices
8049 - Physical Therapy Practices
8051 - Assisted Living Facilities
8072 - Dental Laboratories
8082 - Home Health Care Providers
8099 - Medical Testing Laboratories
8111 - Legal Practices
8249 - Technical and Trade Schools
8299 - Flight Schools
8299 - Tutoring Services
8351 - Child Day Care Centers
8711 - Engineering Services
8712 - Architectural and Drafting Services
8713 - Land Surveyors
8721 - Accounting, Auditing, Tax, and Bookkeeping Services
8721 - Medical Billing Services


How can I order the report?

The report can be purchased for $79.00 at BizMiner.com. The charge will appear on your next credit card statement as BizMiner/Brandow Company. Upon purchase, you will receive instructions on how to access this report online as a .pdf file. You must have Adobe Reader installed to open the .pdf file. A free copy of this software can be downloaded at http://get.adobe.com/reader/.



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