Finance:  Valuation Models for Businesses

March 17, 2005

  Have you ever wondered what your business might be worth?  Each business is unique and it takes a professional to really dig down into the unique details of your business.  At the same time though, you can become familiar with some of the leading indicators that are used to measure your industry.  Inc Magazine put out a great summary of the valuation metrics and multiples for a variety of industries.

  Scanning across the table, you’ll find median annual revenue, median sales price, the three best multiples for this industry, and the price range. You’ll see that the price range is plotted on a logarithmic chart, which makes it easy to compare the ranges of various industries.

• INC Magazines Valuation Chart by Industry images.inc.com/valuation/valuation_metrics.pdf

• Contact us if you would like to know more and we will team you up with some excellent CPA's who work as Certified Valuation Associates in their firms and can help you learn even more.