Private companies in the wholesale trade have the highest median MVIC/SDE multiple (3.80), according to the latest quarterly Pratt’s Stats Private Deal Update (available with a subscription to the Pratt’s Stats deal database). But this industry group does not rank the highest in terms of MVIC/net sales (0.45) or MVIC/EBITDA (3.85). The chart below presents median valuation multiples based on major industry groups, as identified by SIC code. MVIC is market value of invested capital (selling price); SDE is seller’s discretionary earnings.
The Pratt’s Stats Private Deal Update is a quarterly publication analyzing private-company acquisitions by private buyers in the Pratt’s Stats database. Pratt’s Stats features nearly 28,000 private-company transactions, covering acquisitions in 835 SIC and 915 NAICS codes.
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