Comps and multiples

by a searcher from University of Pennsylvania - The Wharton School

7 months ago

Apologies if this has been asked but how do you find the reasonable multiple ranges for small businesses?

I have worked around larger businesses - relatively easier to triangulate multiples using public 1) trading 2) transaction precedents. How does one know what would the multiple be for example for a cabinet business? Assume a hefty discount b/c of non-public adjustment. What other factors should one consider?

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searcher from University of Pennsylvania - The Wharton School

Thank you all - super helpful

6 months ago | like reply | 0 likes

professional from Oregon State University

^Searchfunder member‌- I recommend checking out BVR transactions from DealStats. You can get some accurate benchmarking and ratios based from private company transactions. Please see example: https://www.searchfunder.com/bvr/sector/700

6 months ago | like reply | 1 like

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