Analyzing Business Sale Data with Multiples Maker™

You have total control to integrate and analyze market comps data from whichever database best fits your needs.

If you have access to business sale transaction data you can use Multiples Maker™ to calculate valuation multiples automatically. If you have a subscription to a business sales database or if you work at a firm that keeps a database of its own then this feature is for you.

Key Benefits

With Multiples Maker™, you stay in control while leveraging automation to ensure accurate, consistent, and professional business valuations, faster than ever before.

Here's how it works.

Selecting a business sale data file in Multiples Maker. This is the first step toward calculating business valuation multiples.

Select Your Data Source

First you'll select the Microsoft Excel file containing your business sale transaction data.

The leading market comps databases can export business sale data in Microsoft Excel format suitable for use with Multiples Maker™.

Multiples Maker's flexible data mapping screen.

Pick the Data Points

Then you'll tell ValuAdder which columns contain the business value and financial metrics.

Thanks to this flexibility, you can use data from a wide variety of databases—even a database that your firm keeps in-house.

Applying a discount for lack of marketability (DLOM) using Multiples Maker.

Apply Marketability Discount

If you're using data about publicly traded companies then you'll need to apply a discount for lack of marketability (DLOM). ValuAdder can handle that for you. What's DLOM?

Visualization of outlier filtering in Multiples Maker with standard deviation controls.

Refine Your Data by Excluding Outliers

Just like any data set, you'll usually find outliers in business sale transaction databases—companies whose sale price is far more or far less than the average for their industry and financial metrics.

ValuAdder can exclude outliers for you if you'd like. For each financial metric (like cash flow or net sales), you'll tell ValuAdder how many standard deviations away from average is considered an outlier. ValuAdder will then tell you how many business sales in the data set will be excluded, along with a preview of the resulting multiples.

Multiples Maker has finished analyzing the business sale data. Multiples based on cash flow, FF&E, and net sales have been calculated and are now ready to be used in business valuation calculations.

Your Multiples Are Ready

That's it! ValuAdder will then calculate your new multiples, ready to use in your business valuation calculations.