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 | 25% 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 |
