A Universe of Value

2007 SPECIAL REPORT: THE DEFINITIVE VALUATION GUIDE Medicinals & Botanicals H Communications Metals Service Centers & Offices + A Universe of Value Equipment VERY HIGHLY- VALUED COMPANIES Motor Vehicle Parts & Accessories t Investment Advice In Vitro & In Vivo Diagnostic Substances Commercial Physical Research H Computer Related Services- H Functions Related to Deposit Banking I Biol ogical Produ cts, Except Diagn ostic This chart depicts the current marketplace for private companies. Here's how to read it: Business Consulting Services* - Miscellaneous Publishing I Periodicals -Semiconductors & HFire, Marine, & Casualty Insurance Related Devices I Surgical and Medical Instruments Computer Storage Devices I Phamaceutical Preparations Security Brokers & Dealers State Commercial Banks PREMIUM ZONE Industries that appear above the diagonal line (in the white zone) sell at a premium to annual sales. Those that fall below the line (in the blue zone) sell at a discount to annual sales. Communications Services Special Industry Machinery* Custom Computer Programming Svcs. I- DISCOUNT ZONE I Electromedical Equipment 1 Orthopedic, Prosthetic, & Surgical Appliances & Supplies Finance, Insurance & Real Estate - Computer Peripheral Equipment" Management Consulting Services G Electrical Industrial Apparatus" Prepackaged Software Oil & Gas Field Services" Electrical Apparatus & Equipment Mining The bubbles reflect the size the industry's median sales multiple. - Teleph one & Telegraph Apparatus PREMIUM ZONE The most H Optical Instruments & Lenses DISCOUNT ZONE valuable in- dustries can H Printed Circuit Boards HIGHLY- VALUED COMPANIES -I Sporting & Ath letic Goods* be found in the far right and upper region. The horizontal axis HElectronic Connectors measures median annual revenue; - Water, Sewer, & Utility Lines The least valuable busi- nesses can be found in the lower left region. I Laboratory Cable & Other Pay Analytical Instruments Television Service Computer Integrated Systems Design the vertical axis Data Processing & Preparation HAdvertising Agencies measures median sale price. Manufacturing Ki Commercial Nonphysical Research I Security Systems Service H Airports, Flying Fields, & Services Telephone Communications, Except Radio -1 Engineering Servicee Travel Agencies Help Supply Services E GROUPS SALES PRICE-TO- ANNUAL SALES RATIO Agriculture, Forestry, and Fishing Computers, Peripherals, & Software -I Testing Laboratori es I Transportation, Communications, Electric, Gas & Sanitary Services The size of the bubbles I Disinfecting & Pest Control Services IMortgage Bankers & Loan Correspondents Electrical Equipment & Supplies* represent the ratio of sales price of the business to the annual sales that the business Information Retrieval Services Manufacturing Industries* In dustrial Machinery Motor Vehicle Supplies & New Parts I- Bowling Centers IN Mining - Electronic Parts & Equipment" Fabricated Metal Products* - - Plastics Products Construction Trucking, Except Local- HIndustrial Supplies Manufacturing Special Trade Contractors" K Dire ct Mail Advertising Services Sporting & Recreation Goods generates. Offices & Clinics of Medical Doctors Detective & Amored Car Services Transportation, Communications, Electric, Gas, and Sanitary Svcs. Local Trucking with Storage Services Premium zone ratios (sale price : annual sales) Petroleum Products" Insurance Agents, Brokers, & Service R Equipment Rental & Leasing Painting & Paper Hanging Auto & Home Supply Stores umber& Other Building Materials - -I Radiotelephone Communication FI Drug Stores & Proprietary Stores MODESTLY- VALUED COMPANIES Wood Kitchen Cabinets R Trade, Wholesale -1Offices & Clinics of Dentists -I Single-Family Housing Construction -16:1 Amusement & Recreation* R Trade, Retail Local Trucking Without Storage Electrical Work -8:1 H Boat Dealers I Wood Products* Employment Agencies - Finance, Insurance, and Real Estate Commercial Printing, Lith ography A dvertising" Repair Services"K Carpentry Work k Signs & Advertising Specialties Automotive Services -4:1 Wholesale Trade -2:1 H Durable Goods" 4 Groceries & Related Products" Construcțion- Services 1:1 I Nondurable Goods Discount zone rațios (sale price : annual sales) Roofing, Siding & sheet metal workk Schools & Educational Services" Gasoline Service Stations Carwashes I Business Services* Hardware Stores E -I Miscellaneous Food Store -8:10 Bread, Cake, & Relate d Products | Refuse Systems Plumbing, Heating & Air Con ditioning 1 Medical & Hospital Equipment | Landscape Counseling & Planning Fumiture Stores Concrete Work R Merchandising Machine Operators -4:10 Commercial Printing 2:10 Accounting, Auditing & Bookkeeping - Local Passenger Transportation* i 1:10 Drinking Places Coin-operated Laundries & Cle aning I Hobby, Toy, & Game Shops I Grocery Stores I Liquor Stores Automotive Repair Shops" General Automotive Repair Shops Lawn & Garden Services I Retail Trade Agriculture, Forestry & Fishing Misc. Apparel & Accessory Stores Building Maintenance Svcs. I Misc. Retail Stores Physical Fitness Facilities Misc. Personal Svcs. Computer & Software Stores IPhotofinish Laboratorie LOW-VALUED COMPANIES I Radio, Television, & Electronic Store s I Nursing & Personal Care" Eating & Drinking Places | Top & Body Repair & Paint Shops Stationery & Office Supplies Retail Bakeries Beauty Shops Retail Nurseries & Garden Stores Miscellaneous Home fumishings Women's Clothing Stores 1 Chemicals & Allied Products* Florists Child Day Care Services I Sporting Goods & Bicycle Shops Dry-cleaning Plants, Except Rugs Record & Prerecorded Tape Stores I Gift, Novelty, & Souvenir Shops Animal Specialty Services $100,000 $200,000| $500,000| $1,000,000| $2,000,000| $5,000,000| $10,000,000 $20,000,000| $50,000,000| $100,000,000 MEDIAN ANNUAL SALES 100 | INC. MAGAZINE I JANUARY 2007 MEDIAN SALES PRICE $100,000| $200,000 $500,000 $1,000,000| $2,000,000| $5,000,000| $10,000,000| $20,00,000 $50,00,000| $100,000,000