Market Analysis Portfolio (MAP)
If you have attended an IBA presentation on the use of transaction data, you have seen scattergrams of sales showing the market prices in relation to annual gross revenues, allowing the business appraiser to fit the target business into the "universe" of transactions.
Ever tried to create those scatter graphs on your own?
Now IBA's Market Analysis Portfolio [MAP] provides those graphs, all transaction data for the applicable SIC code, along with a statistical analysis of the data, the applicable information from RMA Annual Statement Studies, and rules of thumb from Tom West's 2006 Business Reference Guide. All these tools are provided with copyright license for use in reports related to a single client assignment. The MAP is provided in a hard copy quality that is suitable to be inserted into the valuation report.
The Market Analysis Portfolio provides the appraiser with the most comprehensive -- and most easily understood -- method of viewing the market for businesses available in the appraisal industry. The philosophy behind the market data method is to view the entire market -- over a time period and in various regions -- to define the market and the subject's place in the market. With this information in hand, the appraiser can objectively place the subject business in today's market by comparing the current business outlook with the outlook at the time of prior sales, comparing the regional outlook with that of other regions, and comparing the subject business' growth, profitability and other significant identifiers with the businesses in the overall "universe".
Most importantly, the transaction data method -- and the Market Analysis Portfolio - provides a value conclusion and visual output which is easily understood by clients, attorneys, juries and judges. The price of an MAP for a single SIC code is $265.00 for Members and $495.00 for Non-Members. You can order the Market Analysis Portfolio through Raymond Carolina, IBA Database Coordinator at 800-299-4130 or data@go-iba.org. For a sample MAP, Click here.