Small Business Valuation Multiples, 2018 Edition
The valuation multiples presented in this
analysis are derived
from actual market
transactions as reported by BIZCOMPS®,with the primary
focus on small businesses priced at less than $1 million. The selected valuation multiple range represents the midrange of the reported transactions.
The average and
median both fall within this range, with the midpoint of the
range closely approximating the median in most cases.
provides transaction data on over 12,424
small business sales transactions from a wide variety of industries. Primary focus is on small businesses priced at less than $1 million, with data available
The price determined by these multiples includes intangible assets
(such as trademarks, 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
equity value of a business.
Price - Sales price paid for intangible assets
and furniture, fixtures, and equipment.
Price/Revenue Multiple - Price divided by annual net sales.
Price/SDE Multiple - Price divided by
seller's discretionary earnings (most recent year's net income before interest,
taxes, depreciation, amortization, primary owner's compensation, and non-business
related or nonrecurring income or expenses).