The average selling price in 2017 for small private companies was $444,000 (excluding inventory), based on transactions in the BIZCOMPS database. The Spring 2018 issue of the BIZCOMPS®/BVR Deal Review™ also reports that the average annual gross sales for transacted businesses in 2017 were $1.034 million. Companies with annual gross sales greater than $700,000 have a median sale price-to-annual gross sales multiple of 0.32 and a harmonic mean multiple of 0.20 for 2017 transactions. This size firm has a median sale price to seller’s discretionary earnings of 2.21 and a harmonic mean multiple of 1.72. There are over 12,000 transactions in BIZCOMPS, which focuses on small-company “mom and pop” or sole proprietorship transactions, the majority of which are for firms with less than $500,000 in gross revenue.