Private companies in the wholesale trade have the highest median MVIC-to-SDE multiple (3.91), 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 to net sales (0.41) or MVIC to EBITDA (3.80). 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 more than 28,000 private-company transactions, covering acquisitions in 835 SIC and 915 NAICS codes.
Source: Pratt’s Stats Private Deal Update, 4Q17
Please let us know
if you have any comments about this article or enhancements you would like to see.