Business Valuations and “Selling Tips” By Industry
Whether you are thinking of possibly selling your business and want to know how to maximize its value, or if you just want to know how much your business is worth, it’s important to understand that many different factors go into business valuations and that these factors vary significantly by industry.
Often when you just start researching the subject of “business valuations” you’ll hear talk of selling multiples on revenue, net income or EBIDTA, and then talk of how to value physical assets vs. goodwill. But over the 18+ years that our firm has been selling businesses we’ve learned that there are very few hard and fast rules that you can apply to any valuation. Rather, the most important factor in valuations is understanding the industry and nature of the business.
So rather than telling you “all businesses sell for between 3X and 5X net income” (which is far from the truth) we thought we’d spend the time and share some more tangible objective data that we’ve compiled, as well as some qualitative input, on how to value different types of businesses based on the industry and nature of the business. So without further ado, please check out the links below to learn more about valuations, multiples and how to maximize the value of different types of small businesses based upon their industry.
Industrial & Manufacturing Firms:
Don’t see your industry on this list? Check back periodically as we’re continually adding new industries to this page. You can also follow our blog or follow us on Facebook to get notified. Or better yet, request a custom valuation of your business for the most accurate picture of what your business would likely sell for, and how long it might take to complete the transaction.
Disclaimer: While valuation guidelines and example selling multiples by industry and many times more accurate than generic overall rules of thumb, it’s important to understand that every business is different and thus your valuation may differ. If you are interested in knowing the actual sellable value of your business rather than just averages then please don’t hesitate to contact us for a free custom business valuation.