Overview of the BIZCOMPS Transaction Database
There are a few well known resources for small business, private company transaction data. The below provides an overview of BIZCOMPS and some unique characteristics that are different from other business valuation resources.
The BIZCOMPS studies of small business sales go back 30 years ago to 1990 and today this database reportedly has over 14,400 deals dating back to 2000. A closer look at the size of deals between January 2006 through December 2017 show an average sales price of approximately $390,000 and a 15% discount from the asking price. The majority of the deals were under $1,000,000 in value, though there are several reported over that amount as well.
This data has been provided by business brokers and transaction intermediaries throughout the United States and can be analyzed based on over 20 parameters including SIC and NAICS codes, location, revenue, discretionary earnings, etc.
One unique aspect on this database is that inventory is excluded. This differs from others which include the inventory in the transaction data. Only two elements are contained in either the asking price or sale price that is reported - fixtures & equipment and intangible assets (including goodwill). Cash, accounts receivable, real estate and all liabilities are excluded. Essentially these are asset sales or have been converted to an asset sale.
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Disclaimer: The information contained in this article is for general guidance only. The information presented should not be acted upon without the advice and guidance of a professional tax, legal, or financial adviser who is familiar with all the relevant facts.