We’ve recently analyzed the latest data from users of The Value Builder System™ and the findings present an interesting snapshot of the current value of privately held businesses. Below are some of the highlights:

The Business Liquidity Index (BLI) has risen to 105.8 from its lowest point on record 

Each quarter, we measure the proportion of business owners that received an offer to buy their business and express the proportion as an index, 100 being the average. The BLI slipped from 90.9 to 81.8 for the quarter ending March 31, 2016 but has risen back up to 105.8 for the quarter ending June 30, 2016, showing that, compared to the previous quarter, a greater proportion of business owners had received an offer to buy their business.

Average offer multiple climbs to 3.8 times pre-tax profit

Moving in lockstep with the BLI, the average offer the users of The Value Builder System™ received in the last quarter has risen from 3.55 times the pre-tax profit in Q1 of 2016 to 3.8 in Q2, 2016. The BLI and average offer multiple usually move in the same direction, since very active markets tend to drive up offer multiples and when less offers are made, multiples go down.

Our latest analysis includes data from more than 23,000 users of The Value Builder System™ from around the world. Of the business owners surveyed, 96% had revenue (annual turnover) of less than $20,000,000, while 4% had revenue in excess of $20,000,000. Findings are considered statistically accurate +/-0.81%, 19 times out of 20.

To view the excerpt from The Sellability Tracker Q2 2016 click here.