Infographic reveals value predictor via DealStats analysis

BVWireIssue #196-1
January 9, 2019

private company transaction data
private company comps, private company transaction data, guideline transaction method, dealstats

BVR’s “What’s Your Company Worth?” infographic is as visually captivating as it is informative, concisely summarizing the most statistically significant predictor of value for each major NAICS industry. The data, culled from DealStats, a transaction database reporting extensive details on 30,000-plus acquired private companies, cement the results found in BVR’s research for the prior edition of this chart—namely, that private companies across most industries generally sell based on seller’s discretionary earnings (an estimate of the total financial benefit to a full-time owner operator). The next best predictor of value was net sales, which may be attributed to some of the “noise” in private-company financial statements, as net sales are a pre-expense measure. As in the previous edition, the information industry—which contains software and other technology companies—continued to display the largest multiples, with EBITDA as the best predictor of value. The “What’s Your Company Worth” chart is now available if you click here.
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