Type of Business
| "Rule of Thumb" valuation
|
Accounting Firms
| 100% - 125% of annual revenues
|
Auto Dealers
| 2-3 years net income + tangible assets
|
Book Stores
| 15% of annual sales + inventory
|
Coffee Shops
| 40% - 45% of annual sales + inventory
|
Courier Services
| 70% of annual sales
|
Day Care Centres
| 2-3 times annual cash flow
|
Dental Practices
| 60% - 70% of annual revenues
|
Dry Cleaners
| 70% - 100% of annual sales
|
Employment & Personnel Agencies
| 50% - 100% of annual revenues
|
Engineering practices
| 40% of annual revenues
|
Florists
| 34% of annual sales + inventory
|
Food/Gourmet Shops
| 20% of annual sales + inventory
|
Furniture & Appliance Stores
| 15% - 25% of annual sales + inventory
|
Gas Stations
| 15% - 25% of annual sales + equip/inventory
|
Gift & Card Shops
| 32% - 40% of annual sales + inventory
|
Grocery Stores
| 11% - 18% of annual sales + inventory
|
Insurance Agencies
| 100% - 125% of annual commissions
|
Janitorial & Landscape Contractors
| 40% - 50% of annual sales
|
Law Practices
| 40% - 100% of annual fees
|
Liquor Stores
| 5% of annual sales + inventory
|
Property Management Companies
| 50% - 100% of annual revenues
|
Restaurants (non-franchised)
| 30% - 45% of annual sales
|
Sporting Goods stores
| 30% of annual sales + inventory
|
Taverns
| 55% of annual sales
|
Travel Agencies
| 40% - 60% of annual commissions
|
Veterinary Practices
| 60% - 125% of annual revenues
|
