ValuAdder Business Valuation Blog

Business valuation tips, updates and advice. Pick up a few suggestions on how to value a business. Feel free to browse the contents or share your thoughts by leaving a comment.

Archive for the 'Valuation in Your Industry' Category

If you are thinking of valuing an environmental consulting company, here are some key industry statistics to ponder. The industry sector, classified under the SIC code 8748-9905 and NAICS code 541620, consists of over 10,220 firms; mostly in private ownership. The industry sector as a whole generates about $13.4B in annual revenues. The average environmental… Continue Reading


Residential and commercial real estate appraisal firms comprise a large segment of the real estate services industry. Classified under the SIC code 6531 – 9901 and NAICS 531320, there are some 14,000 such companies operating in the industry in the US alone. Together these professional services firms generate just over $5.8B in annual revenues employing… Continue Reading


Companies developing security software applications fall within the custom software industry sector. It is classified under SIC code 7371 and NAICS 541512. Information systems security concerns in companies large and small are a major reason this sector of the software industry has experienced rapid growth in recent years. In 2011, over 49,000 US based firms… Continue Reading


Are you preparing a valuation for a home remodeling contractor business? Here are some important industry stats to consider: The home remodeling companies are usually classified within the specialty contractor industry sector under the SIC code 1799 and NAICS 236220. These businesses generate combined annual revenues of $41.96B. There are some 105,000 such firms in… Continue Reading


Biotechnology companies comprise an important and growing industry, classified under SIC code 2836 and engaged in the research, development and marketing of diverse products for the health and bio sciences industries. There are 1,280 such establishments in the US alone generating about $24.2B in annual sales and employing just under 30,000. An average firm makes… Continue Reading


Application software companies are a large industry sector, classified under SIC code 7372 and NAICS 511210, and composed of firms engaged in the development, production and marketing of specialized software products. In this day and age virtually all industries rely on some form of business software to power their operations. As a result the application… Continue Reading


Do you need to value a retail pet store? Here are some industry statistics to consider first: Pet stores are classified under the retail industry SIC code 5999 and NAICS 453910. Pet retail establishments make up a large portion of the miscellaneous retail industry. In the US there are just under 169,000 such operations. This… Continue Reading


Insurance claims administrators and risk managers make up a significant part of the independent insurance industry service provider sector. Some industry statistics Classified under the SIC code 6411 and NAICS 524282, there are some 215,300 establishments concerned with independent insurance services in the US alone. The industry as a whole employs around 1,125,000 staff generating… Continue Reading


Choosing industry specific valuation multiples is one of the biggest challenges in business valuation. When done right, such “apples to apples” comparison offers you a very defensible way to demonstrate what a business is worth. Typical valuation multiples You can calculate the estimate of business market value using a number of valuation multiples – each… Continue Reading


Chiropractic clinics are usually classified under the SIC code 8041 and NAICS 62131. Chiropractic practices make up a sizable part of the large professional health practitioners service industry. In the US there are 38,796 private chiropractic clinics with one clinic for about 8,000 residents. The industry sector generates a total of some $11.4B in annual… Continue Reading


Are you appraising an employment agency or an executive recruitment firm? Here are some vital industry statistics to consider: Classified under SIC 7361, there are over 36,000 employment agencies of all types and sizes in the US alone. The industry as a whole generates a very impressive $29.9 billion in annual revenues and employs some… Continue Reading


Even in a challenging real estate market quite a few specialized construction companies continue to thrive. The secret of success? Here are a few points to ponder: Construction firms in a specialized, well-protected niche, tend to weather the storm better. Established companies with strong reputation in their market place stay busy even as competitors exit.… Continue Reading


Despite the current economic headwinds, many building maintenance service companies with established client contracts continue to thrive. There are some 92,300 such firms in the US alone, classified under the SIC code 7349. The industry segment contributes an impressive $28B in annual revenues to the economy employing just under 840,000 people. The typical janitorial services… Continue Reading


With a global focus on sustainable manufacturing, scrap metal recycling is a key growth industry segment. Classified under the SIC code 3339 and NAICS 331419, there are just under 8,200 metal recycling companies in the US alone. The industry as a whole generates some $21.1B in annual revenues and employs close to 75,600 people. Yet an average metal recycling firm is quite small… Continue Reading


Business people often ask us: “Are different business valuation methods used to value companies in different industries?” It is a very sensible question – after all the differences between, say, a manufacturing firm and a dental practice are profound. Professional business appraisers have developed an elegant, powerful framework to deal with this challenge. At the… Continue Reading