Open for business: Strong economic growth and an improved investment will benefit the industry

Demand for Business Valuation Firms industry services grows in line with corporate profit and access to credit, which boosts both M&A activity and the number of IPOs. Steady increases in the number of adults aged 65 and older prompts sales of businesses whose owners are reaching retirement. These events generally require industry services to determine the value of the businesses that are entering into sales agreements or issuing stock. Furthermore, the number of bankruptcies, which usually necessitate a business valuation firm to help with restructuring, has decreased considerably in recent years, causing industry revenue to only modestly increase over the five years to 2016...purchase to read more.

Industry Statistics & Market Size
Revenue
$5bn
Annual Growth 11-16
1.3%
Forecast Growth 16-21
Profit
Employment
89,012
Businesses
83,220
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • The industry benefits from an improving investment environment and rising corporate profit
  • Operators in the industry charge an hourly rate for services or a flat fee for an appraisal report
  • Industry operators will continue to experience pressure from business valuation software
  • Industry Report - Industry Key Buyers Chapter

    The Business Valuation Firms industry has a low level of market share concentration. In 2016, the top four companies are expected to generate less than 5.5% of revenue. The industry is highly fragmented; about 96.2% of firms operating in the industry are nonemployers. Moreover, business valuation firms that qualify as employers are also small; more than 80.0% of establishments are estimated to employ only one and four workers. The majority of industry operators serve clients within a local or regional scope. Market share concentration has, however, increased slightly over the past five years. The largest operators are acquiring smaller competitors to expand their service offerings and customer base. For...purchase to read more.

    Additional Insights for the Business Valuation Firms Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Business Valuation Firms Industry are

  • Having a good reputation
  • Access to a highly skilled workforce
  • Access to niche markets
  • IBISWorld analysts also discuss how external factors such as Corporate profit and Initial public offerings in the Business Valuation Firms industry impact industry performance..

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    What's in this report

    What is the Business Valuation Firms Industry?

    Companies in this industry estimate the value of an owner’s interest in a business. Business valuation firms are used to determine how much an entity is willing to pay to buy a business or receive to sell a business. Business valuation can also be used for other legal and business purposes.

    Industry Products
  • Capitalization of income valuation
  • Asset valuation
  • Owner benefit valuation
  • Market valuation
  • Industry Activities
  • Provision of market valuations
  • Provision of liquidation valuations
  • Provision of insurance valuations
  • Provision of residual valuations
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Corporate profit
  • Initial public offerings
  • Business bankruptcies
  • Number of businesses
  • Access to credit
  • Investor uncertainty
  • Number of adults aged 65 and older

  • Current Performance
  • How valuation works
  • High competition
  • Chart: Revenue Growth

  • Industry Outlook
  • Waning demand
  • External competition
  • Constrained profit
  • Adapting to a changing climate
  • Table: Business Valuation Firms Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Business Valuation Firms Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Manufacturing
  • Professional, Scientific and Technical Services
  • Law Firms

  • Key Selling Industries
  • Commercial Leasing
  • Computer & Printer Leasing

  • Products & Services
  • Capitalization of income valuation
  • Asset valuation
  • Owner benefit valuation
  • Market valuation
  • Chart: Business Valuation Firms Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Private firms
  • Government institutions
  • Other
  • Individuals and households
  • Chart: Major Market Segmentation for the Business Valuation Firms Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesOther costsThe majority of industry operators lease their premises rather than buy them, raising rent costs. Utility expenses include electricity, gas, internet, telephone and other bills. As a result, rent and utilities costs are estimated to consume 4.2% of revenue for industry operators. Depreciation costs related to computer systems and other capital equipment upkeep is expected to account for 1.0% of industry revenue. Similarly, marketing efforts are estimated to consume 1.7% of industry revenue.
  • Chart: Cost Structure Benchmarking – Sector vs Business Valuation Firms

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Business Valuation Firms Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Business Valuation Firms Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Business Valuation Firms Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Corporate profit (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Estate Planning
  • The process of arranging for the disposal of an estate.
  • Intangible Asset
  • Identifiable non-monetary assets that cannot be physically measured but are identifiable as an asset, including trade secrets and brand name.
  • Investor Uncertainty
  • Also known as the fear index. It is the expected annualized change of the S&P 500 over the next 30 days.
  • Nonemployer
  • A business with no paid employees. Typically self-employed individuals with annual business revenue of at least $1,000 and subject to federal income taxes.
  • What Our Customers Say

    Why buy this report?

    The Business Valuation Firms Industry Research Report measures market size, analyses current and future trends, and provides an indication of market share for the industry’s largest companies. IBISWorld’s collection of industry market research reports gives you insightful, up-to-date information on the supply chains, economic drivers, and key buyers and markets for hundreds of industries.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Business Valuation Firms:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Business Valuation Firms market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Business Valuation Firms, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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