2018 Small Business Valuation Multiples - by Industry, from observed results
Small Business - Return on Investment & Average Sale Price (2012-2017 Australia, based on advertised rates)
ABS Benchmarks: Net Profit Margin by Business Type & Gross Revenue
SMB: Cash flow, Leverage & Equity
A simple to use calculator illustrating the effect of leverage, risk, and changes in the P&L on shareholder wealth.
This is designed to be used as a "sanity check" for prospective purchasers of small businesses, allowing them to quickly and easily see the effect of different funding structures and changes in business performance measures.
This model contains a number of particularly useful features. For example, we provide the ability to model a two scenarios ("High" and "Low"). This is to encourage prospective investors to think about what might happen if business conditions deteriorate. We also include options to adjust earnings for both extraordinary and recurring items. An example here might be an allowance for a "Management Fee" by the new owner, or a large capital expense to launch a new product line or service.
This is designed to be used as a "sanity check" for prospective purchasers of small businesses, allowing them to quickly and easily see the effect of different funding structures and changes in business performance measures.
This model contains a number of particularly useful features. For example, we provide the ability to model a two scenarios ("High" and "Low"). This is to encourage prospective investors to think about what might happen if business conditions deteriorate. We also include options to adjust earnings for both extraordinary and recurring items. An example here might be an allowance for a "Management Fee" by the new owner, or a large capital expense to launch a new product line or service.