The Art of Business Valuation’s, Managing Member, Gregory Caruso, was recently published in the May/June 2023 issue of The Value Examiner. Greg’s article, “Market Method for Valuing Small Businesses – Selecting the Multiplier,” focuses on how to select the multiplier when valuing a small business using the transactions market method in business valuation.
The market method works by comparing actual sales transaction data for companies that are comparable to the subject company. This method is not perfect, but for many small and micro businesses (typically less than $10 million in revenue) it is one of the best methods because, for most industries and SIC or NAICS codes, there is sufficient relevant data.
This and much more information on business valuation of small businesses with revenues under $10 million is available in his book, “The Art of Business Valuation6”, published by Wiley and available online including Amazon. https://amzn.to/3YmTC8T