Business owners, prospective buyers, and industry investors rely on a diverse set of financial benchmarks to assess the value of a business. We have compiled data from current BizBuySell listings and sold businesses to provide insight into the business for sale market and important benchmarks for pricing and evaluating lumber and wood product manufacturing businesses relative to industry standards.
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Lumber and wood product manufacturing companies listed and sold on BizBuySell range from small shops building custom cabinets and millwork for individual homes, to large sawmills and larger companies producing wood products at scale for the manufacturing and construction industries.
Median Sale Price | Median Asking Price |
$1,100,000 | $1,200,000 |
Average Sale/Ask Ratio | Median Days on Market |
0.96 | 270 |
Median Revenue | Median Owner Earnings |
$2,002,220 | $347,151 |
Average Revenue Multiple | Average Earnings Multiple |
0.63 | 3.10 |
The median sale price of lumber and wood product manufacturing businesses listed and sold on BizBuySell increased substantially during and after the height of the Covid-19 pandemic. These businesses saw substantial increases in sales and revenue driven by higher lumber costs and increased demand, which in turn has driven up business values and selling prices. Sale prices came down 30% in 2024 compared to 2023 but remain elevated over pre-pandemic levels.
Valuation, or pricing, multiples are financial tools that allow for comparisons between businesses that have different levels of sales and income. They represent the sales price of a business relative to its financial performance, and given enough individual business sales data, they represent what the market is willing to pay for a business given its revenue and earnings.
Business values and associated multiples fluctuate over time, influenced by a variety of macroeconomic factors such as interest rates, inflation, consumer spending, and overall economic growth. Average earnings multiples of lumber and wood product manufacturers improved materially post-pandemic as their revenues increased and demand for acquiring these businesses increased. Pressure from increasing interest rates drove the earnings multiples down in 2023, and in 2024 average earnings multiples returned to pre-pandemic levels.
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To determine how a business compares in terms of revenue and earnings performance relative to industry peers, it’s necessary to have some insight into industry standards. "Benchmarking" describes the practice of comparing a business’s financial performance to typical industry standards to determine where a business falls relative to other businesses in the same industry. These benchmarks can help guide owners and investors towards appropriate valuation multiples from the range above.
To that end, we have aggregated lumber and wood product manufacturer financial ranges useful for comparing an individual business to its peers sold and for sale.
Median revenue of lumber and wood product manufacturers sold on BizBuySell increased dramatically after the height of the Covid-19 pandemic. Increasing prices of lumber and wood, combined with increased demand, had driven up sales of these businesses. In 2024, median revenue and earnings decreased 24% and 28%, respectively, yet remain well above pre-pandemic median financials.
For a more complete understanding of the market and valuation standards, consider comparisons within the broader manufacturing sector. The chart and table below include key metrics from sales of manufacturing businesses on BizBuySell between 2020 and 2024.
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