Adjusted EBITDA1 and SDE2 are common base figures used in calculating company value. Selecting which to use is imperative in determining the sale price of a business and defining what that value is. General Rules of Thumb Companies are usually valued at 3-6 times adjusted EBITDA or 1-3 times SDE. Earnings less than $1,000,000, use [...]
SDE stands for “Seller’s Discretionary Earnings”. The business sale price paid by buyers for companies with adjusted EBITDA or SDE under $1,000,000, is generally determined by a multiple of SDE. Although it is best to work with a professional to determine the final business sale price, an owner can estimate SDE and an appropriate multiple [...]
Welcome to our “How to Sell” series with industry-specific information on how companies are valued and key factors affecting final sale price. View and print valuation guide: Product Manufacturing Value Advisor Industry Definition Manufacturers of products for a variety of industries who are not contract manufacturers (job shops). Key Valuation Considerations Industries Served: The range for [...]
EBITDA stands for “Earnings Before Interest, Taxes, Depreciation, and Amortization”. The business sale price paid by buyers is generally a multiple of EBITDA, often adjusted for unusual compensation and benefits, then normalized to align with market based benefits and compensation required to operate the business. Although it is best to work with a professional to [...]
Welcome to our “How to Sell” series with industry-specific information on how companies are valued and key factors affecting final sale price. View and print valuation guide: Mechanical Contractors Value Advisor Industry Definition Mechanical Contractors who install and service plumbing, heating and air conditioning equipment. Key Valuation Considerations Business Mix: Certain products and services are more [...]
Welcome to our “How to Sell” series with industry-specific information on how companies are valued and key factors affecting final sale price. View and print valuation guide: Logistics Value Advisor Industry Definition This guidance relates to logistics companies in the areas of freight forwarding, trucking, warehousing and order fulfillment. Key Valuation Considerations Supply Chain Services: [...]
Welcome to our “How to Sell” series with industry-specific information on how companies are valued and key factors affecting final sale price. View and print valuation guide: Wholesale Distribution Value Advisor Industry Definition Companies distributing durable or nondurable goods to retailers, other distributors, industrial clients and commercial clients. Key Valuation Considerations Inventory Management: Profitability of companies [...]
Welcome to our “How to Sell” series with industry-specific information on how companies are valued and key factors affecting final sale price. View and print valuation guide: Engineering Services Value Advisor Industry Definition Companies offering architectural design, engineering design and construction services (AEC). These companies apply engineering principles to design and develop systems, structures, processes and [...]
Certain key considerations either help or hurt company valuations, these are general value drivers that apply across industries (check out our Value Advisor Library for industry specific reference guides). Below are the top 6 factors affecting company valuation: Management Financials End Markets Customers Suppliers Competition Our Value Adviser Reference Guide on General Value Drivers breaks down the top 6 factors affecting [...]
Welcome to our “How to Sell” series with industry-specific information on how companies are valued and key factors affecting final sale price. View and print valuation guide: Printing & Graphics Value Advisor Industry Definition This guidance relates to commercial printers who produce a wide range of products from paper based products, such as brochures, stationery and [...]
