Private companies in the mining and finance/insurance/real estate industry groups have the highest values relative to their revenues, according to the latest quarterly Pratt’s Stats Private Deal Update (available with a subscription to the Pratt’s Stats deal database). These industry groups have a median selling price/revenue valuations multiple of 1.84 and 1.13, respectively. At the low end are firms in the retail (0.37) and construction (0.41) industries. The table below presents the total count of transactions in Pratt’s Stats by major industry group as well as median valuation multiples. The data below include private companies purchased by public and private companies. There are now over 22,000 private-company transactions in the database.
SIC | Industry (transaction count) | MSP/Rev |
0111-0971 | Agric./Forestry/Fishing (531) | 0.57 |
1011-1499 | Mining (202) | 1.84 |
1521-1799 | Construction (802) | 0.41 |
2011-3999 | Manufacturing (3,786) | 0.78 |
4011-4971 | Transport./Public Util.(1,091) | 0.81 |
5012-5199 | Wholesale (1,210) | 0.45 |
5211-5999 | Retail (5,912) | 0.37 |
6011-6799 | Finance/Ins./Real Estate (883) | 1.13 |
7011-9999 | Services (7,781) | 0.69 |
0139-9999 | All Industries (22,198) | 0.56 |
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