An investment strategy based on IP value beats the market
Ocean Tomo tracks, at a macro level, the components of the S&P 500 market value. It’s a familiar graphic for those who do a lot of IP valuation, but it’s still a shock to realize that 79% of corporate balance sheets are made up of intangibles. “There’s a lot wrong with this number,” admits Michael [...]
Business owners and brokers can find 142 more current private company financials and market comps
Doug Twitchell, Publisher of Pratt’s Stats, let businessvaluation.com know that 142 private company deals were just added to the database. Updates occur regularly so that private company owners, business brokers, and business appraisers can review current transactions to get a better sense of market pricing.
The new deals include financial statements, deal terms and purchase price, for [...]
What’s your software company worth?
This Thursday June 24th, BVR’s Webinar Industry Spotlight Series presents “Software Company Valuation,” hosted by Mike Pellegrino (Pellegrino & Associates) and Robert Schlegel (Houlihan Valuation Advisors). Schlegel and Pellegrino, a former software engineer and author of BVR’s Guide to Intellectual Property Valuation, will tackle the valuation challenges appraisers face when valuing software companies–and how owners can create more value. [...]
How does your company stack up?
Business Valuation Resources offers BizMiner financial profiles, the most extensive and comprehensive benchmarking information available to business owners. We are pleased to report that the 2009 financial data is now posted. This means subscribers now have access to historical financial benchmarking data from 2002 through 2009. One-time report purchases are also available to business owners. BizMiner covers 16,000 lines [...]
Intellectual property: is it more than 50% of your asset value?
In a recent article in the ABA’s YourABA, Weston Anson (CONSOR) was asked why IP valuation is attracting so much attention suddenly. Anson, the author of IP Valuation and Management, answered: “I was just at a conference that brought together 200 leading experts in the field of intellectual property. One of my compatriots pointed out [...]
Another view of the private company market from Mergerstat
After declining 26% in 2008, the number of mergers and acquisitions announced in the U.S. decreased only 13% in 2009. “The market, it seems, had nowhere to go but up.” reports FactSet/Mergerstat. On the bright side (if there is one) dealflow has increased each quarter in 2009, the longest such trend since 1995-1996.
In addition to [...]
Need to benchmark your performance? 7-year industry reports may be your best bet
Many owners, analysts, and CFOs are discovering that they can’t capture the current full buzsiness cycle with the standard 3 and 5 year financial history reports available from RMA and other providers. To solve this problem, BizMiner has added 2002-2004 data to their reports so that subscribers now have a choice of selecting 3 yr., [...]
Depressing: median sale price/revenues is now 47%
If you’re thinking of selling your business in 2010…take care. Valuation multiples have definitely taken a fall over the past two to three years, and the newest data from Pratt’s Stats® shows no sign of the much-publicized “recovery:”
Year of Sale
Count
Median revenue
Median selling price
Median price/ sales multiple
Median price/ gross profit
2007
1,493
$844K
$419K
0.58
1.03
2008
1,626
$535K
$250K
0.52
0.88
2009
862
$483K
$207K
0.47
0.74
“It’s important to note that the above includes [...]
How does your retail operation compare?
A lot of the old retail “rules of thumb” have fallen by the wayside in this economy, but we collected this new data from Jon Brandow, CEO of Bizminer, one of the leading provider of comparative data for business owners. These will give you a chance to see how your business compared to other retailers [...]
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