#USA #Philadelphia #BizEquity #Private Business #Valuations

BizEquity Unveils Its 2025 Almanac

On October 23, 2025, BizEquity, a leading name in the business valuation sector, introduced its Annual BizEquity Almanac for 2025. This almanac serves as an extensive resource, offering valuable insights into the landscape of U.S. private businesses. The aim is not just to present statistics but to empower financial professionals with actionable benchmarks that can enhance decision-making processes for their clients.

Overview of the Almanac

The 2025 Almanac is crafted in a format reminiscent of the Old Farmer's Almanac, a beloved guide known for its practical insights across generations. It is designed to equip advisors, wealth managers, CPAs, and business brokers with the necessary knowledge to guide business owners in effectively managing and transitioning their enterprises.

Key Findings

The Almanac compiles data from thousands of valuations, revealing some interesting trends:

• - Stronger-than-Average Businesses: Businesses evaluated within the BizEquity framework tend to be older, with an average age of 24 years, and are generally more profitable than the typical U.S. private firm.
• - Valuation Benchmarks: The median equity value for these companies stands at $2.8 million, while the mean reaches nearly $10 million, showcasing the robustness of middle-market firms.
• - Profitability and Growth: With an average revenue growth of 19% and EBITDA margins of 20%, these firms demonstrate financial metrics that rival those of private equity-backed companies.
• - Owner Dependency: A notable point is that about 40% of businesses would experience a decline in revenue if the owner were to exit, highlighting significant succession planning risks.
• - Industry Insights: Notably, software publishers report substantial SDE margins of 71%, while insurance agencies follow with 63%. However, the restaurant industry lags behind at 33% margins.
• - Risk Exposure: Alarmingly, only 28% of the businesses surveyed reported having adequate insurance coverage, indicating many are critically under-protected.

A Resource for Advisors and Business Owners

Scott Gabehart, the Chief Valuation Officer at BizEquity, stated, "Just as the Farmer's Almanac assists farmers in preparing for seasonal changes, our goal is to arm advisors with the insights they need for effective growth management, risk assessment, and transition planning." The almanac reiterates the importance of valuation knowledge—not merely as a transactional tool, but as an integral component of strategic planning.

The 2025 edition provides a clear comparative analysis of how private companies stack up nationally, by industry, and across essential financial benchmarks. There are plans to expand future editions to include deep dives into specific industries and a concentrated look at smaller, owner-dependent businesses.

Conclusion

The launch of the 2025 BizEquity Almanac marks a significant contribution to the toolkit of financial advisors and business owners alike. By promoting a deeper understanding of business valuations, this resource lays a foundation for better financial strategies and helps to ensure that businesses are prepared for both growth opportunities and potential risks. For anyone involved in the management of private enterprises, this Almanac is a must-read.