Overview of the DealStats Transaction Database
There are a few well known resources for small business, private company transaction data. The below provides an overview of DealStats (previously known as Pratt's Stats) and some unique characteristics that are different from other business valuation resources.
DealStats was launched in 1997 as Pratt's Stats, by a legend in business valuation, Dr. Shannon Pratt. The first reviewer of the database was also a fellow legend in business valuation, Christopher Mercer (Mercer Capital). The first database had 150 transactions.
In July 2018, Pratt's Stats relaunched with new technology and was rebranded as DealStats. The new technology allows users to select fields they wish see, filter and and search on any fields they choose. The updates also included detailed purchase price allocation information. Additionally, transactions of public companies were added (these were previously in a database known as Public Stats). Thus, a user has the option to search for private companies, public companies or both.
There are now over 38,000 transactions in the database with almost 200 data points per transaction. These cover transactions in nearly 70 countries. The data points include days to sell, deal terms, employment/consulting agreement description, and numerous others.
The database is updated by a network of business intermediaries, business broker associations, and corporate franchise headquarters. Each closed-deal information is reviewed by an analyst to ensure compliance with reporting conventions of DealStats. A second source includes public company information gathered through the EDGAR and SEDAR portals. In these cases, analysts research and document mergers and acquisitions of private and public companies made by publicly traded companies.
Three elements are contained in either the asking price or sale price that is reported - inventory, fixtures & equipment and intangible assets (including goodwill). Cash, accounts receivable, real estate and all liabilities are excluded. Both asset and stock sales are reported.
Each transaction is categorized by an SIC and NAICS codes and can be analyzed based on numerous parameters including location, revenue, discretionary earnings, etc.
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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.