Appliance Repair Valuation Multipliers
Two multiples that can be used to value privately-owned appliance repair services businesses are the EBITDA multiple and the revenue multiple. Please note that most of these multipliers were calculated by analyzing mergers & acquisitions (M&A) in the broader repair services sector (like the Consumer Repair Services sector) because reliable multiplies for the Appliance Repair Services sector do not exist in the public domain.
EBITDA MULTIPLE — REPAIR SERVICES
- New York University's professor Aswath Damodaran compiled a 2018 list of annual EBITDA multiple estimates for various industries. Two relevant industry sectors on that list are Maintenance & Repair Services and Consumer Repair Services. Prof. Damodaran estimated the EBITDA multiple for both sectors to be at 11.07.
- Orion Capital Group compiled a table of EBITDA multipliers for multiple industries using M&A data from Inc. Magazine. Repair Services, Not Elsewhere Classified is the sector that most closely matches the Appliance Repair Services sector. It has an EBITDA multiplier of 4.37.
REVENUE MULTIPLE — REPAIR SERVICES
- The table from Orion Capital Group also contains median annual revenue and median sale price data for companies in the Repair Services, Not Elsewhere Classified sector. This data can be used to calculate a revenue multiple for the sector.
- The median annual revenue for businesses in the sector was $583,000, while the median sale price was $425,000. The sale price needs to be divided by the revenue to determine the revenue multiple. Therefore, the revenue multiple for Repair Services was 0.73 ($425,000/$583,000=0.7289).
REVENUE MULTIPLE — APPLIANCE REPAIR SERVICES
- Custom Business Sales, LLC identified a range for the revenue multiple of Appliance Repair Services businesses in an article from 2017. The identified range is 0.25-0.4 (25% to 40%).
- While this is the only multiple for the Appliance Repair Services sector available in the public domain, it should be used with caution. The data is based on the company's internal research, without a provided methodology. The article was published on February 1, 2017, and valuation multiples across all industries have risen in 2018, and continued the trend in the first half of 2019.