“Appraisers should analyze MVIC/Gross Profit multiples for all distribution clients,” says Warren Miller (Beckmill Research, LLC.) “In our experience with small and medium-sized distribution companies, MVIC/GP often has a low coefficient of variation. If that multiple is not already in your guideline public company template, it should be,” he adds.  

Pre-order your copy of Miller’s BVR’s Guide to Valuing Wholesalers, scheduled to ship in September 2011.