MAYNARD, Mass., Jan. 27, 2014 /PRNewswire/ -- The 2014 A/E Business Valuation and Merger & Acquisition Transaction Study, recently published by Rusk O'Brien Gido + Partners, LLC provides new and revealing insight into the values at which firms in the industry actually transact their stock, as well as data on how merger & acquisition transactions are structured, and how firms in various sectors of the industry perform financially.
"This study represents the first in-depth and independent study that examines actual transactions of stock, both internally—meaning by and between employee-managers, and external mergers and acquisitions. That's what makes it unique. We have incorporated ONLY data from actual transactions where money has changed hands between willing buyer and willing seller," said Ian Rusk, one of the study's contributing editors.
The study examined data from over 200 distinct stock transactions collected via a confidential online survey. The publishers supplemented this with data collected from publicly available sources. All data was analyzed and compiled by accredited business appraisers with decades of experience valuing privately held A/E firms. The result is the most comprehensive and reliable study on valuation and mergers & acquisitions ever published for the A/E and environmental consulting industries.
The study examines the differences in valuation multiples between controlling and minority interest transaction, the difference in value between marketable stock (stock of publicly traded firms) and non-marketable stock (stock in privately held firms), and the valuation of stock in ESOP (employee stock ownership plan) transactions. Also provided is a statistical analysis of merger and acquisition deals—including how the transactions were structured, and the forms of consideration paid.
"Data from this study begins to quantify concepts like the premium paid for controlling interests in A/E firms," says Rusk. The survey, which includes statistics on 40 controlling interest M&A transactions revealed that valuation multiples such as enterprise value divided by earnings before interest and taxes (EBIT), and enterprise value divided by earnings before interest, taxes, depreciation and amortization (EBITDA) in controlling interest transactions were 48% to 81% higher than corresponding earnings multiples in minority interest transactions.
The study provides statistical data on ten distinct valuation multiples including value as a multiple of revenue (gross and net), EBIT, EBITDA, number of employees, and book value.
Anyone interested in purchasing this study may do so on-line at www.rog-partners.com/aestudy.
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SOURCE Rusk O'Brien Gido + Partners