ValuAdder Business Valuation Blog

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


How to value a home remodeling contractor business? First, 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 the US alone employing… Continue Reading


Biotechnology companies comprise an important and growing industry. You will find these firms classified under SIC code 2836 and engaged in the research, development and marketing of diverse products for the health and bio sciences industries. Over 1,280 such establishments compete in the US alone generating about $24.2B in annual sales and employing just under… Continue Reading


Application software companies are a large industry sector, classified under SIC code 7372 and NAICS 511210. Importantly, the sector encompasses 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… 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


You have quite a few industry specific valuation multiples to choose from. So if you pick the right ones, you can do quick “apples to apples” comparisons  to figure out the value of a company in your sector. Typical valuation multiples You can nail a pretty accurate business value number by using several valuation multiples. … 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



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