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 by industry” 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 25 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.
Note: If you don’t see your specific business type listed, reach out to us! We offer no-strings attached Confidential Business Valuations, and, confidentiality is the #1 priority!