Latest transaction multiples from Pratt’s Stats

BVWireIssue #147-3
December 17, 2014

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

Free download: BVWire provides an excerpt from the 4Q2014 issue of Pratt’s Stats Private Deal Update, which summarizes and analyzes private-company acquisitions by private and public buyers. It also includes industry and economic forecast information. Click here for the free excerpt.

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