| Type of Business |
"Rule of Thumb" valuation |
| Accounting Firms |
100% - 125% of annual revenues |
| Auto Dealers |
2-3 years net income + tangible assets |
| Book Stores |
15% of annual sales + inventory |
| Coffee Shops |
40% - 45% of annual sales + inventory |
| Courier Services |
70% of annual sales |
| Day Care Centers |
2-3 times annual cash flow |
| Dental Practices |
60% - 70% of annual revenues |
| Dry Cleaners |
70% - 100% of annual sales |
| Employment & Personnel Agencies |
50% - 100% of annual revenues |
| Engineering practices |
40% of annual revenues |
| Florists |
34% of annual sales + inventory |
| Food/Gourmet Shops |
20% of annual sales + inventory |
| Furniture & Appliance Stores |
15% - 25% of annual sales + inventory |
| Gas Stations |
15% - 25% of annual sales + equip/inventory |
| Gift & Card Shops |
32% - 40% of annual sales + inventory |
| Grocery Stores |
11% - 18% of annual sales + inventory |
| Insurance Agencies |
100% - 125% of annual commissions |
| Janitorial & Landscape Contractors |
40% - 50% of annual sales |
| Law Practices |
40% - 100% of annual fees |
| Liquor Stores |
25% of annual sales + inventory |
| Property Management Companies |
50% - 100% of annual revenues |
| Restaurants (non-franchised) |
30% - 45% of annual sales |
| Sporting Goods stores |
30% of annual sales + inventory |
| Taverns |
55% of annual sales |
| Travel Agencies |
40% - 60% of annual commissions |
| Veterinary Practices |
60% - 125% of annual revenues |
