Operators in the Business Valuation Firms industry, also called appraisers, quantify the financial worth of companies of various sizes, from small proprietorships to large multinational corporations. Demand for business valuation services grows in line with corporate profit and access to credit, which boosts both M&A activity and the number of IPOs. However, over the past five years to 2018, the number of IPOs and business bankruptcies declined (bankruptcies usually necessitate a business valuation firm to help with restructuring), providing a smaller pool of contracts for the industry. Due to the abundance of independent appraisers, nonemployers are estimated to account for the majority of industry revenue and establishments. Over the next five years to 2023, industry operators will benefit from an improving investment environment and rising corporate profit. However, the ongoing long-term trend of industry consolidation and competition from new business valuation software will keep pricing competition significant between industry operators.
Companies in this industry estimate the value of an owner’s interest in a business. Business valuation firms are used to determine how much an entity is willing to pay to buy a business or receive to sell a business. Business valuation can also be used for other legal and business purposes.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.