Private companies have a higher selling price/revenue multiple when a public entity is the buyer as opposed to when the buyer is private. This trend holds true across all industries, according to the most recent research data in Pratt’s Stats.
The data in the exhibit include all private buyer and public buyer transactions from within the Pratt’s Stats database. The data were separated by private buyer and public buyer and then categorized by industry.
Pratt’s Stats currently has over 21,300 deals and offers up to 100 data points on each deal, including (when available) a detailed business description, a latest full-year income statement, asset data, a purchase price allocation, noncompete information, financial ratios, valuation multiples, and much more.
Source: Pratt’s Stats, available at www.BVMarketData.com. Table created on June 18, 2014.