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Bizminer’s quartile Vestimate® ranges and mid-range values represent estimated market values for more than 12 million US business operations. Each Vestimate® is updated monthly. Vestimates® integrate Bizminer financial and market analysis content with 30,000 high quality transactional records, but are estimates based on limited information about analyzed businesses and should not be used in place of professional appraisals or valuations. Other elements of the Bizminer Valuation Toolkit include similar or other limitations.

Here's how we do it: Vestimate® are based on data and projections applied to our proprietary calculations. Bizminer develops sales data for about 12 million US business operations using sales per employee, industry pricing and productivity data along with enterprise-level employment reports. Industry and sales class-specific Owner Earnings data from Bizminer's acclaimed industry financial analysis content is also integrated into final Vestimate® calculations. That content has been accepted in US Tax Court and utilized by thousands of accounting, valuation and banking professionals as well as dozens of university business libraries.

The core Bizminer content is integrated with more than 30,000 business transactions collected by DealStats to create median and quartile estimates of worth. Bizminer conducts intensive cleaning at the NAICS-6 level for outliers in the transaction database after segregating the data by industry and creating four sized tiers to develop multipliers used with our own enterprise sales and average industry performance content. In almost every case, at least two different types of multiples—Price-to-Sales and Price-to-Owner Earnings—are averaged to create median, quartile 1 and quartile 3 Vestimate® ranges and values.

Importantly, the Vestimate® only reflects Bizminer’s estimate of the current worth of a business operation given the data available to us. For example, we do not know the Owner Earnings of every business enterprise, and apply the industry sales class average from Bizminer's Industry Financial report series to our calculations instead; the actual value of firms with significantly lower or higher Owner Earnings will likewise vary from calculations of sales multiples that rely upon those metrics. Our enhanced Vestimate® calculator allows clients to input additional firm-specific data that—if accurate—refines the basic Vestimate® calculation, or creates unlimited "what if" scenarios.

You should not use Vestimates® or other tools in the Bizminer Valuation Toolkit in place of a valuation. Bizminer does not suggest using Vestimates® or the Toolkit as the basis of any specific business-related or other financial transaction. You should not attempt to use a Vestimate® or other Toolkit elements to secure a business or personal loan. Our data sources may be incomplete or incorrect; nor have we physically researched or inspected many important details necessary to the valuation of a specific enterprise. Neither the Vestimate® nor other Toolkit tools consider the market environment details nor the idiosyncrasies of a firm’s performance that can influence the actual value or selling price.

We encourage business buyers, sellers, owners and browsers to enhance their understanding of the value of any enterprise before making decisions or taking action. The Vestimate® and other Toolkit elements are modeled informational tools, not guides to action. For that we recommend obtaining an appraisal from a business broker, a valuation from a certified valuation professional, or both.

Valuation Multiples Definitions
Our multiples are derived from the Dealstats database of more than 30,000 historical business sale transactions. Bizminer cleans and filters the database for locations and anomalies, and applies standard outlier protocols and exclusion calculations to the raw data to determine median and quartile values at the NAICS-4-5-6 levels.

Multiple values are presented at the most detailed available industry level. In some cases, detailed NAICS or sales group transaction records do not include the minimum number of transactions required for our multiples calculations. In those cases, we may display multiples which reflect values of the directly related NAICS parent industry or sales group. Depending on availability, multiples for one approach (sales or earnings) may reflect a more detailed industry tier than the other.

The Earning Multiple calculation is:
Sale Price/Discretionary Owner Earnings
where:
Discretionary Owner Earnings =Operating Profit + Owner’s Compensation + Depreciation/Amortization)

Selling Price: The selling price is the total consideration paid to the seller and includes any cash, notes, and/or securities that were used as a form of payment plus any interest-bearing liabilities the buyer assumed. The selling price includes the non-compete value and the assumption of interest-bearing liabilities and excludes the real estate value; any earn-outs; and the employment/consulting agreement values. In an Asset Sale, the assumption is that all or substantially all operating assets are transferred in the sale.

Asset Sale Note: In an Asset Sale, the assumption is that all or substantially all operating assets are transferred in the sale. In an Asset Sale, the Sale Price may or may not include all current assets, non-current assets, and current liabilities (liabilities are typically not transferred in an asset sale).