Business Valuation Resources is excited to share with you our most recent research on the Pratt’s Stats distribution of selling price to seller’s discretionary earnings (SDE) multiples.

The data in the graph below include only private buyer transactions with a selling-price-to-SDE multiple from 2010 to the present. The data were separated by year and then sorted by the selling-price-to-SDE multiple. The general trend is that the majority of transactions have a selling-price-to-SDE multiple between above 1.0 to 3.0.

Stay tuned for more: As business intermediaries continue to submit deal information, we will further analyze the data and publish them here. Please email us your wish list of any specific analyses you’d like to see from Pratt’s Stats, and we’ll address it in future issues of the BVWire.

Note: Data are based on private buyer types. Source: Pratt’s Stats, available at www.BVMarketData.com. Created on Sept. 4, 2014.