Like all companies in the current market, ABC has been spending time on how to best utilise the data we accumulate as part of our day-to-day operations. 35 years of history in the business sales market has provided ABC with rich data regarding business sales statistics. In particular, we have just compiled a business multiples database that allows all our brokers to look at average multiples per industry based on thousands of transactions over the past decades.
Business multiples are still the most commonly used method to value a business in today’s market; the simplicity of using EBITDA/EBIT x industry multiple allows this process to be easily understood and widely used.
For any business owners who want to understand what the average business multiple is for their industry, please feel free to contact your local ABC representative, or simply reply to this email with your industry, and we can provide you with the relevant data.
The business multiple will provide a high-level guide only to what your business is worth in the current market; it needs to be noted that all businesses have unique factors that can decrease/increase their value compared to industry averages.
If you want a comprehensive document outlining the market value of your business, the team here at ABC can provide you with a tailored business appraisal free of charge. For this service, please contact your local ABC representative.