With a global focus on sustainable manufacturing, scrap metal recycling is a key growth industry segment. Classified under the SIC code 3339 and NAICS 331419, there are just under 8,200 metal recycling companies in the US alone. The industry as a whole generates some $21.1B in annual revenues and employs close to 75,600 people. Yet an average metal recycling firm is quite small… Continue Reading
Business people often ask us: “Are different business valuation methods used to value companies in different industries?” It is a very sensible question – after all the differences between, say, a manufacturing firm and a dental practice are profound. Professional business appraisers have developed an elegant, powerful framework to deal with this challenge. At the… Continue Reading
Continuing our discussion about valuation of software services companies, let’s focus on the market valuation approach. A central technique under this approach is the comparative transaction method. It is especially useful for valuing private software firms. In a nutshell, the method lets you determine the value of your software firm in comparison to similar companies that have… Continue Reading
If you own a private mailing business or need to appraise one for a client, here are some interesting statistics to consider: Mail box rental and shipping companies are classified under the SIC code 7389 and NAICS 561. This business services sector has just under 1,500,000 firms that generate over $301B in annual revenues. The… Continue Reading
One of the key factors that affects the value of a company is the industry in which it operates. So the question is why and by how much? The answer is risk. In fact, the industry-specific risk premium is one of the elements that make up the discount and capitalization rates for your business. And… Continue Reading
Do you own a lanscaping services company? Need to determine the value of your own business or prepare an appraisal for a client? Here are some interesting industry statistics to consider: Key landscaping industry statistics Classified under SIC code 0781 and NAICS 56173, there are over 93,680 landscaping planning, design and counseling establishments in the US alone. The industry as… Continue Reading
If you talk with professional business investors or business brokers, soon enough you will hear them mention business valuation ratios. Business appraisers refer to these tools as valuation multiples. Basically, the ratios are a technique to estimate the value of a business based on comparable business sales. Such market-based valuation tools are very useful in… Continue Reading
Privately owned and operated florists are a major part of the retail industry. Classified under the SIC code 5992 and NAICS 453110, there are around 35,650 such establishments in the US alone. The industry as a whole generates an impressive $6.6B in annual revenues and employs over 135,000 people. Yet an average flower shop is… Continue Reading
If you are like most business people, CPAs, brokers or investors, you probably take the actual business selling prices as a strong indication of what a similar business is worth. In fact, the market approach to business valuation relies on such selling prices comparisons for a good reason: Business selling prices offer an objective evidence… Continue Reading
Need to know how to value a service business? To get a top quality business appraisal, consider using several well-known business valuation methods. Professionally prepared appraisals use several valuation methods. Be aware that each method represents a different view of measuring business value. So it’s a good idea to review the results from several different… Continue Reading
One of the most difficult situations that often call for a business appraisal is divorce. Just about any jurisdiction considers business ownership interest a property that is part of the marital estate. As such, it must be distributed among the spouses. In the US, the family courts follow two standards on how the property in… Continue Reading
Classified under the SIC code 8011, the primary care physician practices are part of a large professional health practitioners service industry. In fact, there are over 373,000 medical practices in the US alone. The industry as a whole generates some $202B in annual revenues, and employs over 3,000,000 professional and office staff. However, a typical… Continue Reading
If you are considering an outside investment for your business or looking to put money into a promising company, business valuation is surely to be one of the key data points in your decision making. Significant investments are usually made in order to achieve some strategic goals such as increasing the business revenues, entering a… Continue Reading
One of the most challenging tasks you are likely to face when considering an outside investment is how to determine the value of your company. Referred to by venture capitalists as the post-money valuation, this key step gives you a number of strategic decision data points: What the entire company is worth, known as the… Continue Reading
Considering getting a surveying firm valuation? If you own a land surveying firm or plan to acquire one, here are some interesting industry statistics. Classified under the SIC code 8713 and NAICS 54136, there are some 770 such establishments in the US alone, employing over 11,500. While the industry as a whole generates $3.1B in… Continue Reading