Business Valuation Firms in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: January 2024
NAICS OD4797Revenue
$9.4bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
62,220
Businesses
50,192
Wages
$X.Xbn
Business Valuation Firms in the US industry analysis
Revenue for business valuation firms has been volatile during the current period. The strong economy pre-pandemic boosted business confidence, so companies engaged in many mergers and acquisitions (M&As), aiding revenue growth. Halting economic activity during COVID-19 caused corporate profit to plunge in 2020. This gave companies far fewer funds to invest in business valuation services, resulting in falling revenue growth during the pandemic. As corporate profit and consumer spending soared during the pandemic recovery, revenue recovered. Spending from individuals proceeded to slow recently because of declining per capita disposable income. This slowed investment in the industry's services from households and individuals. Access to credit has increased recently, causing households and businesses to purchase more assets. They've increased their uptake in business valuation services so they can find the value of the assets or companies they're seeking to purchase. Overall, revenue for business valuation firms is expected to creep downward at a CAGR of 0.1% during the current period, reaching $9.4 billion in 2024. This includes a 4.5% jump in that year.
Trends and Insights
- Revenue has been volatile during the current period. High business confidence boosted downstream demand in the years right before the pandemic, while plunging corporate profit caused revenue to drop significantly during the pandemic.
- Spending on capitalization of income valuation has fallen during the current period. Demand for capitalization of income valuation depends on the level of mergers and acquisitions (M&As), which has plunged amid concerns related to inflation and recessionary fears.
- The Mid-Atlantic region is home to New York, the heart of the nation's financial industry. Since finance companies often invest and engage in mergers and acquisitions (M&As), demand for business valuation services is high in the Mid-Atlantic.
- The physical capital needed to set up a business valuation firm is very low, as it often only requires a small office space and a computer. Low physical capital costs reduce barriers to entry, which hinders consolidation.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 0.1 % over the past five years, to reach an estimated $9.4bn in 2024.
Trends and Insights
Surging confidence caused revenue to soar right before the pandemic
- The economy was strong at the beginning of the current period, as the United States was in the final stages of an expansion following the 2008 financial crisis.
- Additional trends and insights available with purchase
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
The economic recovery will provide a necessary lifeline for business valuation companies
- Despite challenges related to inflation, recessionary fears and rising interest rates, GDP is expected to grow modestly during the outlook period.
Biggest companies in the Business Valuation Firms in the US
| Company | Market Share (%)
2024 | Revenue ($short_0)
2024 | Profit ($short_0)
2024 | Profit Margin (%)
2024 |
|---|
There are no companies that hold a large enough market share in the Business Valuation Firms in the US industry for IBISWorld to include in this product.
Products & Services Segmentation
Business Valuation Firms in the US
Products & Services
Industry revenue is measured across several distinct product and services lines, including Capitalization of income valuation, Asset valuation and Owner benefit valuation. Capitalization of income valuation is the largest segment of the Business Valuation Firms in the US.
Trends and Insights
Demand for capitalization of income valuation is dependent on the level of mergers and acquisitions
- Capitalization of income valuation measures intangible assets and is often used for service-based firms.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Real Estate Appraisal in the US
- Credit Counselors, Surveyors & Appraisers in the US
Complementors
- Conveyancing Services in the US
- Accounting Services in the US
International industries
- Real Estate Appraisal in Canada
- Accounting Services in Canada
- Real Estate Valuation Services in Australia
- Real Estate Investment Trust Activities in the UK
- Accounting & Auditing in the UK
Table of Contents
About this industry
Industry definition
Companies in this industry estimate the value of an owner’s interest in a business. Business valuation firms 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.
What's included in this industry?
Provision of capitalization of income valuationsProvision of asset valuationsProvision of owner benefit valuationsProvision of market valuationsCompanies
Purchase this report to view all major companies in this industry.
Related Terms
ESTATE PLANNINGINTANGIBLE ASSETINVESTOR UNCERTAINTYNONEMPLOYERIndustry Code
NAICS 54199 - Business Valuation Firms in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Revenue has been volatile during the current period. High business confidence boosted downstream demand in the years right before the pandemic, while plunging corporate profi...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Spending on capitalization of income valuation has fallen during the current period. Demand for capitalization of income valuation depends on the level of mergers and acquisi...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The Mid-Atlantic region is home to New York, the heart of the nation's financial industry. Since finance companies often invest and engage in mergers and acquisitions (M&As),...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
The physical capital needed to set up a business valuation firm is very low, as it often only requires a small office space and a computer. Low physical capital costs reduce ...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
The four big valuation companies (Deloitte, PwC, KPMG and E&Y) aren't included in this industry because their services are specifically tied to audits. These companies perfor...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
Detailed analysis
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Business valuation firms must know the plethora of regulations governing financial institutions. Companies can also gain certifications to increase their notoriety.
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
While revenue has grown significantly during the current period, profit has remained pretty steady. Intense price competition has limited profitability among business valuati...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Business Valuation Firms in the US industry in United States in 2024?
The market size of the Business Valuation Firms in the US industry in United States is $9.4bn in 2024.
How many businesses are there in the Business Valuation Firms in the US industry in 2024?
There are 50,192 businesses in the Business Valuation Firms in the US industry in United States, which has declined at a CAGR of 8.7 % between 2019 and 2024.
Has the Business Valuation Firms in the US industry in United States grown or declined over the past 5 years?
The market size of the Business Valuation Firms in the US industry in United States has been declining at a CAGR of 0.1 % between 2019 and 2024.
What is the forecast growth of the Business Valuation Firms in the US industry in United States over the next 5 years?
Over the next five years, the Business Valuation Firms in the US industry in United States is expected to grow.
What does the Business Valuation Firms in the US in United States include?
Provision of capitalization of income valuations and Provision of asset valuations are part of the Business Valuation Firms in the US industry.
How competitive is the Business Valuation Firms in the US industry in United States?
The level of competition is moderate and steady in the Business Valuation Firms in the US industry in United States.
