Does anyone have any knowledge of typical P/E ratios currently being used in business earnings valuations? I know that business valuation is not a precise science(!), but I am trying to get an idea of the sort of earnings multipliers being used in disposal negotiations in the current market.
The particular business I am interested in, is privately owned, based in the North of England and operates in the construction industry. The shareholding in question is a minority holding, so it would also be very helpful if anyone has experience of typical P/E ratio discounts which might be applied for a minority shareholding.
I have commissioned and received a valuation of the shareholding, which has used one P/E ratio. However that P/E ratio differs wildly from the ratio being quoted by the 3rd party.
To reiterate, I know there is no right and wrong answer to this question, and any deal will only be done if the potential buyer and seller can agree a price for the shares. Nonetheless it would be very helpful to get some view on typical P/E ratios which might be applicable in the current market.
Many thanks in anticipation.
- When to include value of import in Box 7 62 1
- employer pension contributions - OMB company 161 2
- Accounts production software license expiry & possible alternatives 303 7
- Capital gain? 76 3
- Are clients getting more stupid? 1,246 21
- Construction Industry Allowable expenses 268 8
- Recharge for private use of a company car 348 8
- How could I be identified for VAT purposes in UK? 413 8
- vat help for catering concession 274 10
- IHT dilemma 1,154 17
- Tax return software for remote working 233 3
- CGT 333 14
- Problems with Sage 50 Payroll v21(2015) pension module 320 1
- Interest paid to non-UK company - Deduction 110 2
- Compliance check 512 13
- sole trader accountant 786 14
- Entrepreneurs Relief 400 15
- Capital Allowances and Building Improvements 604 21
- More AE! 498 11
- How to classify an asset 162 3
- Auto enrolment excuses 1,079
- Feedback on accounts production software for IFRS 778
- Add T&Cs to Sales Order in Sage 463
- Digita Hosted Software 280
- Call Centre Data Costs 251
- Are any of you agents for doctors? 224
- Credit where credit's due....... 217
- Buying goods in US and selling them to company in US 206
- Married Couples Allowance wasted? 187
- Director phone costs 149