Terminology
Understand every data field in your Bizstats report. Each term below is explained so you can make the most of the insights we provide.
Identification & Classification
Unique identification number for the sale record.
Australian and New Zealand Standard Industry Classification. Identifies the industry the business operates in.
Geographical location of the business within New Zealand.
Operational Metrics
Duration (in months) it took to sell the business.
The total income generated by the business in a financial year exclusive of GST.
Gross profit percentage. Indicates the profitability of the business after deducting direct costs of goods sold.
Seller's Discretionary Earnings is the earnings of the business before:
- • Proprietors income (salary, wages, director fees)
- • Interest
- • Taxes
- • Depreciation
The FTE count of working owners.
Remaining months on the business's lease agreement at the time of sale.
- • A/R = As required
- • F/H = Freehold
- • Home = Home based
- • MTM = Month to month
- • N/A = Not applicable
- • New = New lease
Sale Components
Total price at which the business was sold (Tangibles + Stock + Intangibles).
Value of tangible assets owned by the business, such as machinery and equipment, excluding real estate. The freehold value is recorded in some instances and can be requested by emailing info@bizstats.co.nz.
Value of the business's inventory or stock on hand.
Value of intangible assets, such as brand value, intellectual property, and goodwill.
Calculated Multiples
The sale price multiple relative to SDE.
= Sale Price / SDE
The percentage of intangible asset value relative to SDE.
= Intangibles / SDE
Pre-tax return on investment based on the sale price.
= SDE / Sale Price
Revenue multiple mainly used in food retail industries in the upper North Island (e.g. restaurants, cafes, bars, dairies, superettes). Usually not relevant to other businesses.
= (Tangibles + Intangibles) / Average Weekly Sales (incl. GST)