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As a subscriber, you will
also have access to a comprehensive resources section including up-to-date articles on topics including:

How to Buy or Sell a Private Company
Buying Distressed Companies
Planning an Exit Strategy
Methods of Valuing a Business
Capital Gains Tax Changes 2008
Grooming Your Business For Sale
Buying Insolvent Businesses
Tax Implications of
Earn-outs
How to Approach Business Sellers
Evaluating a Target Company
Essential Due Diligence Questions
Raising Finance for an Acquisition
Acquisition Strategies
Obtaining MBI Finance
Post Purchase/Merger Integration
Company Exit Multiples
Negotiating Techniques

Businesses for sale | Private Company Price Index

The Private Company Price Index (PCPI)

Every quarter, the Business Sale Report will summarise the BDO Stoy Hayward Private Company Price Index (PCPI). The PCPI tracks the relationship between the current four month rolling average FTSE Non-Financials price earnings ratio (p/e) and the p/es currently being paid on the sale of private companies. The FTSE Non-Financials p/e is calculated from the p/es published in the FT. The private company p/e is calculated from publicly available financial information on deals that complete in the quarter.

As private companies are generally owner-managed, reported or disclosed profits tend to be suppressed by various expenses that may be non-recurring under a new owner. This will have been factored into the price the purchaser paid, but may not be reflected in the profits declared to the public. The effect of this is that the p/e paid as calculated from the publicly available information may be over stated. The PCPI tracks the discount between how public and private companies are being valued. This discount means valuation techniques can be used that are only relevant to public companies and apply them to private companies in the same sector.

The PCPI is generally recognised as the most authoritative source on private company values by practitioners in the market, including the Inland Revenue and leading accounting firms.

These quarterly updates are available in the subscribers section

Other areas covered:

The up to date Private Company Price Index

Summary of deal activity

Study of M & A activity in a certain market sector

 

 

 


16 May 2008
Reuters, the news and information group is to be bought out by Thomson, the Canadian financial data ...[more]
14 May 2008
Anite, the UK-based IT solutions company, is currently undergoing a strategic review of its public s...[more]
12 May 2008
Natalie Massenet, founder of the online fashion retail business, Net-a-Porter.com, is thought to hav...[more]
09 May 2008
Mobile bulk messaging group, Dynmark, is undergoing a review of its business which may lead to a sa...[more]

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