Using Rule of Thumb Benchmark Data to Verify Financials

Business Valuation UpdateVol. 28 No. 9
September 2022
industry analysis
market approach, benchmark, rules of thumb

Summary

In addition to being used as a check to corroborate a value conclusion reached using other methods, rule of thumb data can be used to validate historical financials. This is particularly useful when valuing cash-intensive businesses. The article provides benchmark data for a dozen types of firms that do a lot of cash business.