Other Notes of Interest:
  • A broker should be able to give you a good valuation (I recommend finding a broker with a CBI and/or CM&AI/CM&AP who has been trained in valuation methods and has access to the necessary tools).
  • There are three methods typically used for valuations:  Asset, Future Earnings and Comparable Sales methodologies.
  • Future Earnings and Comparable Sales methodologies use multiples of Discretionary Earnings (DE) or Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA).  See graphic below for the DE Multiple.

The Average Multiple

What Is My Electronic Manufacturer Worth?

  • Calculating the value of your business requires a bit more sophistication than simply applying a multiple; hence, the need for a broker with valuation expertise.
  • Their are many different sizes of electronics businesses for sale and any given time.  See chart below for 2010 to 2015 transaction values by size.
What Is My Electronic Manufacturer Worth?


  • For assistance selling your electronics busienss, you have three options:  Use a Business Broker for deals under $1M, an M&A Advisor for deals between $1M and $50M, and Investment Banks for larger deals.  (Edison Avenue handles deals less than $50M).