In the five years to 2016, IBISWorld estimates revenue for the Business Valuation Firms industry will increase at an average annualized rate of 3.9% to $3.1 billion. During that time, the industry will benefit from rising corporate profit and a more stable investment environment. Business valuation firms will also experience increasing demand from the growing number of business owners that are looking to retire. During the next five years, more baby boomers will reach retirement age. For this reason, industry research firm IBISWorld has added a report on the Business Valuation industry to its growing Advisory & Financial Services and B2B Services report collection.
Los Angeles, California (PRWEB) December 14, 2011
What is my business worth? During the past five years, the Business Valuation industry's growth has been hampered by investor uncertainty, strained credit lines and diminished corporate profit. These factors have caused would-be buyers to become risk averse and hold off on potential expansion and investment plans. Consequently, industry demand slowed during the recession as businesses slowed the number of acquisitions. Luckily for industry operators, business bankruptcies often require a business valuation firm to help with restructuring. An increase in business bankruptcies during the recession helped mitigate declines during the recession. In the five years to 2011, IBISWorld estimates revenue for the Business Valuation industry has increased at an average annualized rate of 0.3% to total $2.6 billion.
Industry revenue is expected to increase 4.2% in 2011, largely due to a decline in investor uncertainty and improving corporate profit. Nevertheless, industry profit margins remain constrained from pricing competition caused by a flood of new firms during the early- to mid-2000s. Recently, enterprise growth has been more normalized. The Business Valuation industry has a low level of market share concentration. According to IBISWorld’s latest in=depth 40 page industry report, the largest company in the industry, CBIZ Valuation Group, increased its market share through organic and acquisition-led growth. For example, in 2010, CBIZ acquired Goldstein Lewin & Company as well as Kirland, Russ, Murphy & Tapp P.A (KRMT), both of which provide financial services, including business valuation services, allowing the company to increase its market share. In the five years to 2011, IBISWorld estimates the number of firms operating in this industry has increased.
According to IBSIWorld analyst, Caitlin Moldvay, in the five years to 2016, IBISWorld estimates revenue for the Business Valuation industry will increase at an average annualized rate of 3.9% to total $3.1 billion. Industry operators will benefit from a more stable investment environment and rising corporate profit. “Valuation firms will also experience increased demand from the growing number of baby boomers who are reaching retirement age and looking to sell their businesses,” says Moldvay. This will be especially true when the economy returns to more normalized growth and the value of businesses start to increase. While pricing competition will remain a concern, more firms are expected to move into specialized niche practices in order to maintain profit margins.
For more information, including latest trends, statistics, analysis and market share information, download the full report from IBISWorld on the Business Valuation Industry
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