Best Multiple Comps Tool for PE Targets?

September 07, 2024

by a searcher in San Francisco, CA, USA

I’m looking at a niche industry that is traditionally rolled up by PE. Do you know what tools would have history of these transactions?

BVR doesn’t have much, and I worry that Peer Comps may not either seeing that they seem to be pulling from SBA data.

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Reply by a searcher
from University of Glasgow in Glasgow, UK

I have found it difficult to get small private company transaction values, public company details are more readily available through one of the platforms, so it really depends on the size of the acquisition EBITDA. For very small businesses i.e. £100K - £500K, you could look at bizbuysell, for slightly larger ones take a look at BVR. This community is generally looking at £1M - £5M in EBITDA, so finding relevant information can be challenging and other methods of valuation can be employed DCF, historic industry specific multiples. Unfortunately there is no one single specific answer hence the plethora of new valuation platforms that have sprung up over the last few years. Personally I have a tool that looks at all of the above and I will also look at IRR. In conclusion the 3 main ways are: seller view - historic adjusted EBITDA, buyer view - DCF, market view- comps (precedent transactions).

Reply by a professional
from Youngstown State University in Birmingham, AL, USA

This happens from time to time. PitchBook is a great but pricey tool. What is the industry or NAICS code for the company you’re looking at? Sometimes you have to pull comps from closely-related companies to get an idea. With more information about the niche industry someone on Searchfunder may be able to provide better insights.

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