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Frequently Asked Questions
Which business valuation multiples are included in this report?
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 in the report?
How can I order the report?
Which business valuation multiples are included in this report?
The business valuation 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.
How 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.
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 in the report?
A complete list of the industries included is presented below:
SIC 0181 Landscape and Plant Nurseries
SIC 0740 Veterinary Services
SIC 0752 Boarding Kennels and Pet Grooming Services
SIC 0782 Landscape and Lawncare Services
SIC 0783 Tree Trimming, Planting, and Removal Services
SIC 1520 Residential Construction and Remodeling Contractors
SIC 1541 General Building Contractors - Nonresidential
SIC 1542 Fire and Flood Restoration Contractors
SIC 1611 Paving Contractors
SIC 1623 Utilities Contractors
SIC 1711 Plumbing, Heating, and Air Conditioning Contractors
SIC 1721 Painting Contractors
SIC 1731 Electrical Contractors
SIC 1741 Masonry Contractors
SIC 1742 Drywall, Plaster, Acoustical, and Insulation Contractors
SIC 1743 Tile and Marble Contractors
SIC 1752 Commercial Flooring Contractors
SIC 1761 Roofing, Siding, and Sheet Metal Contractors
SIC 1771 Concrete Contractors
SIC 1791 Structural Steel Contractors
SIC 1793 Window and Door Contractors
SIC 1794 Excavating Contractors
SIC 1799 Fencing Contractors
SIC 1799 Swimming Pool Contractors
SIC 2050 Wholesale and Commercial Bakeries
SIC 2097 Ice and Ice Products Manufacturers
SIC 2300 Apparel and Clothing Manufacturers
SIC 2389 Contract Sewing
SIC 2394 Awnings, Tents, and Other Canvas Products Manufacturers
SIC 2395 Embroidery Services
SIC 2431 Millwork, Window, and Door Manufacturers
SIC 2434 Kitchen Cabinet and Countertop Manufacturers
SIC 2500 Furniture Manufacturers
SIC 2591 Window Coverings Manufacturers
SIC 2700 Book, Magazine, and Newspaper Publishers
SIC 2752 Commercial Printers
SIC 2759 Silk Screen Printers
SIC 2819 Chemical Manufacturers
SIC 2834 Water Purification Products Manufacturers
SIC 3080 Plastics Products Manufacturers
SIC 3270 Ready-Mix and Concrete Products Manufacturers
SIC 3281 Cultured Marble and Marble Products Manufacturers
SIC 3441 Structural Metal Fabricators
SIC 3444 Sheet Metal Fabricators
SIC 3446 Ornamental and Architectural Metal Products Manufacturers
SIC 3470 Metal Coating, Plating, and Finishing
SIC 3544 Tool and Die Shops
SIC 3585 HVAC and Refrigeration Equipment Manufacturers
SIC 3599 Machine Shops
SIC 3672 Electronic Assembly Manufacturers
SIC 3714 Auto Parts and Accessories Manufacturers
SIC 3949 Sporting Goods Manufacturers
SIC 3993 Sign Manufacturers
SIC 4119 Limousine Services
SIC 4119 Medical Transportation Services
SIC 4212 Waste Disposal, Garbage Collection, and Trash Removal
SIC 4212 Local Trucking Services
SIC 4213 Long Distance Trucking Services
SIC 4213 Vehicle Transport Services
SIC 4214 Moving and Storage Services
SIC 4215 Courier and Delivery Services
SIC 4581 Aircraft Cleaning and Janitorial Services
SIC 4724 Travel Agencies
SIC 4731 Freight Forwarders and Brokers
SIC 4959 Parking Lot Sweeping Services
SIC 4959 Environmental Cleanup Services
SIC 5013 Auto Parts and Accessories Distributors
SIC 5031 Door, Window, Cabinet, and Millwork Distributors
SIC 5044 Office Equipment Distributors
SIC 5045 Computer and Computer Equipment Distributors
SIC 5046 Food Service Equipment and Supplies Distributors
SIC 5047 Medical Equipment and Supplies Distributors
SIC 5051 Metal Service Centers and Distributors
SIC 5063 Electrical Supplies Distributors
SIC 5065 Electronic Parts and Equipment Distributors
SIC 5072 Hardware Distributors
SIC 5074 Plumbing and Heating Equipment and Supplies Distributors
SIC 5085 Industrial Equipment and Supplies Distributors
SIC 5087 Cleaning and Maintenance Supplies Distributors
SIC 5088 Golf Cart Distributors
SIC 5091 Pool and Spa Equipment and Supplies Distributors
SIC 5092 Toy, Game, Hobby, Arts, and Crafts Distributors
SIC 5093 Scrap and Waste Material Recyclers and Processors
SIC 5094 Jewelry, Precious Stone, and Precious Metal Distributors
SIC 5112 Office Supplies and Stationery Distributors
SIC 5113 Paper Products and Packaging Distributors
SIC 5140 Food Distributors and Wholesalers
SIC 5170 Oil, Fuel, and Gas Distributors
SIC 5193 Flower and Nursery Plant and Supplies Distributors
SIC 5199 Advertising Specialties Distributors
SIC 5211 Building Supplies Stores and Home Centers
SIC 5211 Garage and Overhead Door Dealers and Retailers
SIC 5231 Glass Stores and Shops
SIC 5251 Hardware Stores
SIC 5261 Lawn and Garden Centers
SIC 5331 Dollar and Variety Stores
SIC 5411 Convenience Stores
SIC 5411 Grocery Stores and Supermarkets
SIC 5421 Meat Markets
SIC 5421 Fish Markets
SIC 5441 Candy, Nut, and Confectionary Stores
SIC 5461 Bakeries and Bakery Shops
SIC 5462 Donut Shops
SIC 5499 Water and Ice Retailers
SIC 5499 Health Food, Vitamin, and Supplement Stores
SIC 5521 Used Car Dealers
SIC 5531 Auto and Truck Parts and Accessories Stores
SIC 5531 Tire Dealers
SIC 5541 Gasoline Service Stations and Minimarts
SIC 5551 Boat, Watercraft, and Marine Supply Dealers
SIC 5561 Recreational Vehicle Dealers
SIC 5571 Motorcycle Dealers
SIC 5600 Clothing Stores
SIC 5661 Shoe Stores
SIC 5699 Uniform Stores
SIC 5712 Furniture Stores
SIC 5713 Carpet and Floor Covering Stores
SIC 5714 Drapery, Curtain, and Window Covering Stores
SIC 5722 Household Appliance Stores
SIC 5734 Computer and Electronics Stores
SIC 5812 Restaurants, Sandwich Shops, and Cafes
SIC 5812 Coffee Shops and Coffeehouses
SIC 5812 Food Caterers and Catering Services
SIC 5932 Pawn Shops
SIC 5932 Used Merchandise Stores
SIC 5941 Bicycle Shops and Bike Stores
SIC 5941 Bait and Tackle Shops
SIC 5941 Dive Shops
SIC 5941 Sporting Goods Stores
SIC 5942 Bookstores
SIC 5943 Office Supplies and Stationery Stores
SIC 5944 Jewelry Stores
SIC 5945 Toy, Hobby, Arts, and Craft Stores
SIC 5947 Card and Gift Shops
SIC 5961 Catalog and Mail Order Businesses
SIC 5962 Vending Machine Operators
SIC 5963 Newspaper Delivery Service
SIC 5992 Florists and Flower Shops
SIC 5994 Newsstands
SIC 5995 Retail Optical Services
SIC 5999 Cell Phone Stores
SIC 5999 Pet Stores
SIC 5999 Picture Frame Shops
SIC 5999 Commercial Art Galleries
SIC 5999 Cosmetics and Beauty Supplies Stores
SIC 5999 Pool and Spa Equipment and Supplies Stores
SIC 5999 Hearing Aid Stores
SIC 5999 Trophy, Plaque, and Award Stores
SIC 6099 Check Cashing Services
SIC 6361 Title Insurance Services
SIC 6411 Insurance Agencies
SIC 6500 Property Management Services
SIC 6512 Executive Suites
SIC 6531 Real Estate Agents and Brokers
SIC 7033 Recreational Vehicle Parks and Campgrounds
SIC 7211 Commercial Laundries
SIC 7215 Coin-Operated Laundries
SIC 7216 Dry Cleaners
SIC 7217 Carpet Cleaning Services
SIC 7221 Photographers and Photography Studios
SIC 7230 Hair Salons, Beauty Salons, and Barber Shops
SIC 7299 Dating Services
SIC 7299 Massage Therapy Services
SIC 7299 Tanning Salons
SIC 7299 Tuxedo Rental
SIC 7311 Advertising Agencies
SIC 7322 Collection Agencies
SIC 7331 Direct Mail Marketing and Advertising Services
SIC 7334 Photocopying and Duplicating Services
SIC 7336 Commercial Art and Graphic Design Services
SIC 7338 Secretarial and Transcription Services
SIC 7342 Pest Control Services
SIC 7349 Janitorial and Cleaning Services
SIC 7359 Equipment Rental and Leasing
SIC 7359 Party and Event Rentals
SIC 7359 Portable Toilet Rental Services
SIC 7360 Employment and Temporary Help Agencies
SIC 7371 Computer Repair and Service
SIC 7371 Website Design and Development Services
SIC 7372 Software Companies
SIC 7379 Internet Service Providers
SIC 7381 Security Guard Services
SIC 7382 Security Systems and Alarm Services
SIC 7384 Photo Processing and One-Hour Photo Labs
SIC 7389 Home Inspection Services
SIC 7389 Interior Designers
SIC 7389 Pool Cleaning Services
SIC 7389 Packing and Shipping Services
SIC 7389 Mail Box Rental and Shipping Services
SIC 7389 Paralegal Services
SIC 7389 Conventions, Events, Meetings, and Trade Show Services
SIC 7514 Auto and Car Rental and Leasing
SIC 7532 Auto Body Shops
SIC 7532 Auto Interior and Upholstery Repair Shops
SIC 7533 Auto Muffler Shops
SIC 7536 Auto Glass Repair Shops
SIC 7537 Auto Transmission Repair Shops
SIC 7538 Auto Repair Shops
SIC 7542 Car Washes and Auto Detailing Services
SIC 7549 Tow Truck and Towing Services
SIC 7549 Oil Change and Fast Lube Services
SIC 7549 Auto Window Tinting Services
SIC 7629 Appliance Repair Services
SIC 7641 Upholstery and Furniture Restoration Services
SIC 7699 Lawnmower Repair Shops
SIC 7699 Locksmith Shops
SIC 7699 Tool and Blade Sharpening Services
SIC 7699 Welding Services
SIC 7812 Video Production
SIC 7841 Video Rental Stores
SIC 7911 Dance Studios
SIC 7933 Bowling Alleys
SIC 7991 Health and Fitness Clubs
SIC 7991 Day Spas and Salons
SIC 7992 Golf Courses and Driving Ranges
SIC 7993 Amusement Arcades
SIC 7999 Billiard Parlors
SIC 7999 Boat and Jet Ski Rentals
SIC 8011 Medical Practices
SIC 8021 Dental Practices
SIC 8021 Oral and Maxillofacial Surgery Practices
SIC 8041 Chiropractic Practices
SIC 8049 Physical Therapy Services
SIC 8051 Nursing Care and Assisted Living Facilities and Services
SIC 8072 Dental Laboratories
SIC 8082 Home Health Care Services
SIC 8099 Medical Testing Services
SIC 8111 Legal Practices
SIC 8249 Technical and Trade Schools
SIC 8299 Auto and Truck Driving Schools
SIC 8299 Flight Schools
SIC 8299 Tutoring Services
SIC 8351 Child Day Care Centers
SIC 8711 Engineering Services
SIC 8712 Architectural Services
SIC 8713 Surveying Services
SIC 8721 Accounting, Auditing, Tax, and Bookkeeping Services
SIC 8721 Medical Billing Services
How can I order the report?
The report can be purchased from
BizMiner.com for $79.00.
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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