BV News and Trends November 2023
A monthly roundup of key developments of interest to business valuation experts.
Private-company EBITDA multiples up in 2Q2023
After a downward slide in the fourth quarter of 2022 and the first quarter of 2023, the median selling price-to-EBITDA multiple has jumped to 4.0x in the second quarter of 2023 (see the graph below), according to the latest issue of the DealStats Value Index (DVI).
Private-company EBITDA multiples down again in 1Q2023
After a rebound in the third quarter of 2022, EBITDA multiples continue to drop.
Private-company EBITDA multiples rebounded in 3Q2022
After dropping to their lowest levels in recent years, EBITDA multiples rose to a median of 3.7x in the third quarter of 2022, up from 2.8x in the second quarter (see graph below), according to the latest issue of the DealStats Value Index (DVI).
BVR Responds to Hitchner Article on DealStats
This is a response to an article by Jim Hitchner discussing the various transaction databases including BVR’s DealStats. It gives an additional perspective on the private buyer transactions in DealStats.
BV News and Trends October 2022
A monthly roundup of key developments of interest to business valuation experts.
SME transaction values drop to 2.9x for 2Q2022
EBITDA multiples are at 2.9x for the second quarter of 2022, which is down from the 4.5x rate in the first quarter of 2022, according to the latest issue of the DealStats Value Index (DVI).
DealStats users spark enhancements to the database
BVR's Market Data Team recently surveyed DealStats users, and their suggestions have prompted some enhancements.
SME transaction values rise to 4.5x for 1Q2022
EBITDA multiples are at 4.5x for the first quarter of 2022, which is up from the 3.9x rate in the fourth quarter of 2021, according to the latest issue of the DealStats Value Index (DVI).
DealStats Yields Insights on How Crises Impact Exit Values for Small Firms
Recently, BVR provided some assistance to researchers at Colorado State University who were examining the sales of small businesses in the wake of a crisis, such as the pandemic. Their study offers some new insight on how crises impact exit value and the selling process.
EBITDA multiples continue upward trend, per DealStats analysis
The median selling price/EBITDA multiple increased to 4.5x in 1Q2022, up from 3.9x for 4Q2021, according to the latest DealStats Value Index, which summarizes valuation multiples and profit margins for acquired private companies by time period, sector, and size.
BV News and Trends April 2022
A monthly roundup of key developments of interest to business valuation experts.
Appraisal Review for Financial Reporting
Appraisal reviews are increasing in importance and frequency. Available guidance on the appraisal review process is modest. Join Ray Rath to cover topics important to the process of performing an appraisal review as well as responding to inquiries from a reviewer of a valuation prepared for financial reporting. Ray Rath will focus on the review process and not a listing of common errors or overview of technical knowledge required to prepare or review an appraisal.
15 Cautionary Areas to Review in ESOP Valuations
Business valuation practitioners perform private-company equity appraisals for many applications including gift/estate tax planning, transaction opinions, and financial reporting; yet ESOP valuation assignments present complex challenges. Not only is the purpose of the appraisal unique, but the particular client, an ESOP trustee (acting as a fiduciary), also has many ESOP-specific disclosures and requirements. A well-developed ESOP valuation report may not simply achieve the appraisal prescription set forth in Revenue Ruling 59-60 or USPAP compliance. Join ...
Hitchner’s primer on three transaction databases
“Read the instructions” to transactional databases is the advice Jim Hitchner (Financial Valuation Advisors) stressed several times in the February 2022 issue of Hardball With Hitchner.
2021 EBITDA multiples down slightly, per DealStats
Despite the vaccination rollout starting in the first quarter of 2021, EBITDA multiples ticked slightly lower, to 3.8x, according to BVR’s DealStats Value Index (DVI) report for 2Q 2021.
BVU News and Trends April 2021
A monthly roundup of key developments of interest to business valuation experts.
Global BVU News and Trends March 2021
Business valuation news from a global perspective.
2020 EBITDA multiples rebound, per DealStats
In 2Q20, EBITDA multiples (median selling price/EBITDA) across all industries dropped to 3.7x as deal activity almost came to a halt, according to BVR’s DealStats Value Index (DVI) report for 1Q 2021.
Could proposed changes to Companies House small-company filing requirements improve market data options for business valuers?
The Department for Business, Energy and Industrial Strategy’s (BEIS) reforms to Companies House filing requirements (first announced in September 2020) continues to move forward.
BVU News and Trends January 2021
A monthly roundup of key developments of interest to business valuation experts.
3Q20 private-company EBITDA multiples rise, per DealStats
After a drop in 2Q20, EBITDA multiples (median selling price/EBITDA) across all industries increased to 5.1x in the third quarter of 2020, the highest level since 2018, according to BVR’s DealStats Value Index (DVI) report.
BVU News and Trends February 2020
A monthly roundup of key developments of interest to business valuation experts.
Median EBITDA multiple now 4.4x for small and medium enterprises
The median selling price/EBITDA multiple across all industry sectors is 4.4x, according to the 4Q 2019 DealStats Value Index (DVI).
Private-company selling price/EBITDA median is 4.4x, per DealStats
The median selling price/EBITDA multiple across all industry sectors is 4.4x, according to the 4Q 2019 DealStats Value Index (DVI).