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.
- Allowable for Corporation Tax? 236 5
- Bank Statement Scanning Software? 137 2
- Work to Rented Business Premises 136 1
- Not a question but made my day 1,160 23
- Directors, service companies and national minimum wage (NMW) - Profit extraction 382 11
- Employee leaving mid month and Payroll Manager 1,149 24
- IHT400 or IHT205 - disagree with solicitor 131 1
- Amending 13-14 sole trader return to reflect increased profit in 14-15 264 4
- I forgiven loan an Output? 163 2
- V T Software 197 2
- Thinning income 346 3
- How do I know if I have to apply a reverse charge mechanism 137 3
- SA302's - What's the deal? 348 4
- tax credits 263 4
- Past rental expenses 125 1
- What do do about VAT? 552 15
- Buying a company for £2000 from owner how it works? 290 5
- Vat Exemption moving to a partnership 192 2
- Audacity 1,325 22
- Seeking advice: Paying Funeral Costs 696 8
- NHS finance professionals 598
- Auto Enrolment and Foreign employers 390
- Foreign Pension Contribution 363
- vat gross profit percentage margins 334
- Employee's statement of sickness (SC2) form - no longer available as downloadable pdf 325
- Pre Season Invoice dated September how do you treat the VAT as not due until May 16 306
- SWAT AML v Anti Money Laundering Compliance Plus (AMLCP) 273
- Does pension term assurance count for unused relief purposes? 228
- IFA income recognition & reporting 200
- Incorporating doctors 193